\
31 HIM,,
Lovell
FINANCIAL
WAltGS
Alldrive 6000 Dimmer.
PUBLISHED IN LONDON AND FRANKFURT.
for Management
Contracting
No. 28,846
Monday August 9 1982
***30p
«>
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Tel: 0926 - 22471 .
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it
NEWS SUMMARY
GENERAL
BUSINESS
CBIrift
with
Thatcher
grows
Texas
energy
bank
rescued
The rift "between the Govern-
ment and industry over the
state of the economy is putting
the Prime Minister’s closest
supporters in the Cabinet in-
creasingly on the defensive. '
Hardliners in the Cabinet ral-
lied at the weekend to support
Chancellor Sir Geoffrey Howe’s
determination not to introduce
a mini-budget, amid signs that
the CB1 is likely to follow its
gloomy economic report last
week with concerted pressure
for reflationary measures in the
autumn. Details. Back Page;
Midlands in Recession Back
Page.
• TJ.S. BANK regulators have
arranged for Aibilene National
Bank in Texas to be taken over
by Mercantile Texas Corpora-
tion, one of the state’s biggest
banks. ■ Abilene National lent
heavily to energy -companies
and was hit by the decline in
oil prices and by concern, about
energylending banks after the
collapse of Penn Square Bank.
Back Page
• Nl'OVO Banco Ambrostano
opens for business today with
starting capital of L600bn
(£ 2 50m) provided by seven
banks. Page 18
SA compromise
The South African Government
may be willing to compromise
on its decision to cede part of
the Kwazulu tribal homeland to
Swaziland. Page 2
Detention death
Ernest Depale, 21, a "black de-
tainee held under South
Africa’s Internal Security Act.
was found banged in his cell at
Johannesburg Police Head-
quarters.
Hunger vigil
Mrs Donna Hartman, • the wife
of the U-S. Ambassador to
Moscow, visited Soviet hunger
striker Yuri Balovlenkov -for
the third time to try to per-
suade him to end his 35-day
fast for the right to emigrate.
• THERE was little or no posi-
tional change within the Euro-
pean Monetary System last
week. Interest rates tended to
ease a little, but further cuts
will probably depend on the
attitude of the Bundesbank at
this week's meeting of the
central council. Here, there
could be a cut in the Lombard
rate, although recent dollar
strength has brought this more
into question. However, the
Bank of France cut some domes-
tic interest rates, while the
Belgian authorities trimmed
i point off short-term Treasury
bill -rates. The Italian lira
remained the most improved
currency within the system, and
the D-mark was again the
weakest member, although- all
currencies traded comfortably
within their divergence Emits
Israeli Minister dashes Beirut pact hopes
airs
•£ tl
BY DAVID LAI NON IN TEL AVIV AND NORA BOUSTANY IN B EIRUT
HOPES that a peaceful agree- of being uprooted from Beirut
ment to resolve the crisis in one way or another."
Beirut might be at hand The Palestinian' leadership is
appeared dashed last night by widely thought in Beirut to
General Arid Sharon, the have agreed at last to leave the
Israeli Defence Minister, who city. Although the precise
yesterday divided over the plan
for evacuation, not with stand-
ing Gen Sharon's later state-
ments after he met Mr Habib.
Mr Menahem Begin, the
Israeli Prime Minister, is
an urgent message from Mr by Mr Habib, who has sug- attempt to withdraw without a
George Shultz, the U.S. Secre- gested that some PLO forces proecive screen oeween flteir
taxy of State, Mr Begin told leave before the entry of the forces and tb* Israelis would be
international troops and that
said:- “ There is no agreement, details of the deployment of a thought to h&ve spoken in
no arrangement *' for the peace-
ful evacuation of the Palestinian
fighters from the Lebanese
capital.
After a three-hour meeting in
Beirut with Mr Philip Habib,
the U-S- special mediator, and as
sporadic skirmishing between
the Israelis and the besieged
members of the Palestine Liber-
ation Organisation / PLO > con-
tinued, Geo Sharon said that
the main problem was that no
Arab country, apart from
Jordan, was willing to give the
guerrillas sanctuary.
Jordan would, only accept a
small, number. The majority
bad -nowhere to go, so it was
impossible to talk about there
being a plan to evacuate the
PLO, the minister said.
At the same time, be said,
“ the terrorists are on the verge
multinational force are not
known, it is. believed that a few
PLO fighters would, leave, pend-
ing the arrival of the first con-
tingent— probably French para-
troopers — of a force which
would include U.S. troops. Tbe
French soldiers being, in place,
the majority of the PLO would
then withdraw.
Tbe official Beirut radio
carried reports claiming that a
list of thousands of names of
Palestinian guerrillas had been
prepared and handed to Mr
Habib.
Gen Sharon is known to be
the main advocate in the Israeli
Cabinet of a military, rather
than a diplomatic, solution to
the two-month-old selge of
Beirut.
The Israeli Cabinet appeared,
however, to have concluded its
marathon five-hour session
Cabinet in favour of the diplo-
matic .process. Responding to
him that Israel would be willing
to permit a multinational force
to enter Beirut after most of
the PLO fighters had left
This was seen as a move
part-way towards the proposal
French troops stand by
9 French troops from regi-
ments trained for quick
deployment are standing by
to take part In an inter-
national peace-keeping force
in Beru it.
• Jordan said it would take
some of the Palestinian
guerrillas beseiged in West
Beirut hut did not give any
□umbers.
• In West Beirut there is
little donbi among observers
that the PLO is now sincere in
its declared willingness to
remove its forces from Beirut
despite two months of
haggling.
• Mr Moshe Arens, the
Israeli ambassador to Wash-
ington, expressed concern at
the participation of French
troops in any peace-keeping
force. He did not have “ total
confidence ’■ in French objec-
tives, he said.
' • President Reagan has post-
poned a holiday in California,
due to start on Wednesday,
partly as a result of the con-
tinuing tension. .The main
reason, however, is his desire
to lobby Congress on the U.S.
Budget
others depart afterwards.
However, the sweetness and
ligh t emanating from the Prime
Minister's office were not forth-
coming from the Defence
Ministry. Even before General
Sharon's remarks, which
followed the meeting with Mr
Habib, an unnamed “official,”
belief to be General" Sharon,
described the latest talks about
PLO agreement to evacuate as
a “fraud.” He accused Mr
Habib of deceiving both Israel
and hte U.S. about PLO Inten-
tions.
He said that, by endorsing
such a plan, tbe American
envoy was seeking, in effect, to
create a situation in which only
a few hundred Palestinian
fighters would leave tbe
Lebanese capital, while the
bulk of the PLO force would
remain, sheltering behind the
multinational force.
The PLO leaders are widely
thought to believe that to
tantamount to invitation of a
massacre by t!»e Israelis. Among
Palestinians, it is believed that
Mr Habib has personally
accepted that most of tbe
Palestinians probably cannot
withdraw without a multi-
national force in place.
The fact that France might
head tbe multinational force
appears to have enraged Gen
Sharon, who believes that this
is another attempt to save the
PLO from total evacuation or
destruction.
In his message to hie Secre-
tary of State, Mr Begin did say
that Israel would not accept
French troops in Beirut with-
out prior agreement from
Jerusalem.
As though to confirm Israel's
determination on this point,
there were reports yesterday
that Israeli troops had taken up
positions near Jounieh. north, of
Beirut, to prevent a landing by
French paratroopers.
iotc
ufac
ver
out
per
s hi
bu
ai
sect
NHS action goes ahead
despite Fowler criticism
BY PHILIP BASSETT. LABOUR CORRESPONDENT
Jobless fast
«fr-
Three Greek graduates who
passed civil service examinations
but never received, .appoint-
ments completed the 50th. day of
a hunger strike intended to
pressure the socialist govern-
ment into finding them jobs.
EfflS Aug.6, 1982 _
Grid
*25N
Church’s assets
Almost four years after the.
ritual deaths of the Rev Jim
Jones and hundreds of his
followers in Guyana, the
People's Temple’s £5m assets
will be shared by 600 victims
and relatives.
Tree campaign
The people of Peking have
planted 2.7m trees. this summer
in the Government’s campaign
to turn the dry and dusty
capital into a garden city.
5%-
— ECU HVBttMg r
I-
I
Boat deaths
About 300 people are believed
to have drowned when an over-
loaded boat sank, in the Straits
of Makassar off Indonesia last
week. The boat, which had a
capacity for 60 passengers, was
carrying- -400;
77m chart shows the two constraints
on European Monetary System ercchanga
rates. The upper grid based on the
weakest currency in the system defines
the cross rates Irom which no currency
(except the lira ) may move more than
Z 1 , par cent. The lower chart gives
each currency's divergence, from the
" central rate “ against the European
Currency Unit (ECU I hat 1 1 a basket
of European currencies.
U Ister questioning
A man who had been held by
police investigating last month’s
provisional - ERA bombings in
London was being questioned
by Ulster detectives, apparently
in connection - with a "murder
inquiry.
• MEXICO would have had to
default on its £46m foreign debt
but for its effective devaluation
of the peso and partial imposi
tion of exchange controls, said
President Jose Lopez Portillo,
Page 2
Coach crash
Thirteen" people were injured,
one .. seriously, -when a coach
carrying 37 members of the
Leeds Post Office Rambling
Association crashed near Har-
rogate ai the weekend.
Pig liberation
Compassion in World Farming,
an ThnhjreHa'-' brganisatimi 'for
severed animal welfare groups,
is to launch d. nationwide cam-
palpi- next, month .against tire
factory farming of pigs.
• AIRLINES ' involved in
-* illegal bucket shop " ' ticket
deals should face sanctions,
but there should be a new
"range of bona fide discount
fares, said the International
Air Transport Association.
Back Page
• IGI has -deferred plans to
build a £ 100m -pi us methanol
plant on Tees-side.
• INTERIG, a new company, is
to design, -build, sell and lease
a type of oil production plat-
form which .could develop small,
marginally " economic fields.
Back Page
Briefly. . . .
Seventy-one people have now
died as a result -of a textile
factory- -fire in northern
Tanzania.
• CITIES SERVICE shares are
expected to fall -heavily on
Wall Street today following the
withdrawal of Gulf Oil’s £2.9bn
bid. Page IS
West German grand prix at
Hockenheim was won by Patrick
Tambay - (Ferrari, France).
• BR and unions have agreed
there will -be no compulsory re-
dundancies among drivers as a
result of flexible rostering.
Pages
CONTENTS
SahekPr^eins of Western making .14
14 Lombard: Anatole Kaletsky
Jo hmmmi :CBVs saver on US, constitution ... 15
lining 15 Management: Exploiting
Siberuarjv pipeline: Legal telecoms 1-
mfegfofogs / 3 "Technology: Fresh air— the
Ed&onWcomment: Italian ^ fe ' saver ^
crisis; " Budget- Panama: Survey t-10
Art!
Buc'jnsn^.Oianr--
Convmw NAw
CmiwM; -
Cn ta ra lwi ft HM *
financial Diary. ....
13
11
16
6
4
16
13
13
4.
.4
«"«, Oft; Marinette
U* M
Labour
Laadan ;
4JttW«
Managanwrt
Men A Manar* ...
Money a Excbnfl#,
Owraua torn* —
Raemfl —••••* __
Share Information 22. 23
TadiftoWfly ;
TV and Radio - .. 11
UK News " A s
‘6
14.
IB
12
14
20
2
11
"Unlr Truata 20. 21
Weather
World Eeen. I"**. 3
World. Stock Mbta. 19
World Trade 3
ANNUAL STATEMENTS
Ferguson IH 16
1C Gaa 24
INTERIM STATEMENTS
Barclays BK. jnt ... - 16
Botswana RST ~. " .4.
THE Government yesterday
launched a strong attack on
the industrial action in the
National Health Service which
today enters its most prominent
phase with five days of intensi-
fied action aimed at reducing
all hospitals to accident and
emergency services only.
The criticism of -the health
workers' pay campaign took a
new form when Mr Norman
Fowler, Social Services Secre-
tary, gave fresh figures which
he said showed the real impact
thr " industrial action had on
patients. " ’• •. ■ ■
Mr Fowler said that tbe esti-
mates, based on information
provided by health authorities
over the past few weeks, showed
that as a result of the industrial
action:
• Hospital waiting lists in
England had increased by about
"65,000.
• Around 60,000 operations in
England have been postponed
or cancelled.
O About 75,000- out-patient
appointments have been post-
poned.
According to Mr Fowler,
These figures show ** once more
bow false the claim is that
industrial action does not affect
patients. Industrial action is
affecting patients, and five days
of further action will have
even worse effects.”
Mr Fowler did not believe
that the new round of industrial
action for such a lengthy period
could be justified. He said: “I
very much hope that Health
Service staff will continue to
work today" and tbar their
unions return to negotiations.
He repeated that the current
offers — 7J per cent for nurses,
with 6 per cent for most other
workers, at a total cost of
£400m— -were final. He said:
“There is no more money for
further improvement”
However, health service
unions were critical of Mr
Fowler’s figures. The National
Union of Public Employees said
that government cuts in NHS
funding, forcing some hospitals
or their departments to close,
were having a much worse
Fleet Street electricians, who
are also Threatening to stop
work tomorrow, are meeting
tonight, though there were some
suggestions yesterday of an
intervention against the action
by Mr Frank Chappie, general
secretary of the Electrical and
Plumbing Trades’ Union.
While both the Fleet Street
electricians and Sogat '82
branch have gone further than
the previous tactic of seeking
space in newspapers, for a state-
EEC looks
at US threat
to steel pact
By Our Foreign Staff
EUROPEAN COMMISSION offi-
cials were yesterday attempting
to assess the threat to the new
EEC-U.S. steel pact posed by
the rejection of the deal by
Mr David Roderick, chairman
of U.S. Steel.
The export restraint agree-
ment, which effectively cuts
European steel shipments to the
U.S. by 10 per cent from pre-
sent levels until the end of
1985. was dismissed by Mr
Pertini bids to fora
Italian government
BY RUPERT CORNWELL IN ROME
PRESIDENT Sandro Pertini to-
day starts what promises to be
a particularly difficult round of
consultations to form a new
Italian government and stave off
elections this autumn. 18
months before they constitution-
ally fall due.
The fate of the first admini-
stration in 35 years not headed
by a Christian Democrat was
sealed on Saturday when Sig
Giovanni Spadohni. leader of
the Republican Party and
prime minister for the last 13
SffiS - -way ■*-
Tbe Government's new
figures are likely to provoke a
further row with the unions
after the dispute between the
two sides over the pay figures
used by the Department of
Health and Social Security in
national newspaper advertise-
ments last week.
Even the moderate, non-TUC
Royal College of Nursing was
critical of the advertisements.
Miss Gillian Sanford, RCN
deputy general secretary, des-
cribed them as “grossly mis-
leading." and said ‘the pay
fiures were “ inflated ’’ by pay-
ments for special duties which
many nurses did not do.
Mr Fowler, in a radio inter-
view yesterday, defended the
figures, though he said they had
been presented in a way in
which the public would under-
stand them.
National newspaper em-
ployers seem likely to seek an
injunction restraining print
unions from taking action in
support of the NHS workers if
they pursue their threat to halt
all newspaper production on
Tuesday night.
workers, the National Graphical
Association is pressing for
newspapers to run a TUC state-
ment on Tuesday — -the same day
as the papers are due to be
stopped.
The prospect of the NGA
joining the action is raised in a
circular from Mr Joe Wade,
NGA general secretary, which
slates: “If there is a refusal
on the part of the management
of the national" newspaper to
publish the statement, mem-
bers are to be instructed that
they are not to co-operate with
publishing the newspaper on the
clay in question.”
In the NHS dispute itself,
many hospitals will be on strike
this week, and the unions pre-
dict that the majority will be
reduced to accident and emer-
gency-only cover.
Meetings and rallies across
the country throughout the week
will culminate on Friday with
a demonstration in Whitehall
and the presentation of a letter
by nurses and other NHS
workers jn support of their case
to the Prime Minister at 10,
Downing Street
Brussels' efforts to defuse the
transatlantic steel dispute have
now been thrown into confu-
sion.
In addition to being ,an invi-
tation to other leading American
steelmakers to veto The deal
struck last week between the
European Commission and the
Reagan Adminsitration, the U.S,
Steel rejection makes it less
likely that the major EEC steel
producers will this week be able
to agree concerted cutbacks,
although these are crucial to
any overall settlement.
Viscount Etienne Davignon,
the EEC Industry Com-
missioner, said at the weekend
that September 15 was the
“ ultimate deadline " for
approval of the agreement which
seeks to settle the dispute over
cheap European steel exports.
He said the Community had not
Continued on Back Page
tion of his five-party coalition.
Its collapse was inevitable
when the Socialists, the second
largest member party, endorsed
tbe resignation en bloc of their
seven Cabinet ministers, follow-
ing a parliamentary defeat last
Wednesday.
Two options face the presi-
dent: either the formation of a
new coalition along the lines
of the outgoing administration;-
or the dissolution of parlia-
ment.
The president has said he will
do all in his power to avoid
new elections, and most other
parties, In public at least, sup-
port him.
But the Socialists, confident
of a strong showing at the polls,
are talking openly of going to
the country. Siq RLno Formica,
the Socialist Finance Minister,
declared at Lbe weekend that
the paralysis of a 45 to 70 day
election campaign was prefer-
able to the extension of a legis-
lature “no longer capable of
governing.'
After the first formal round
of discussion, the president
shonld be ready by mid-week to
name a prime minister desig-
nate. According to convention,
his choice is likely to fall upon
the outgoing prime minister,
allowing Sig Spadolini Srst
chanec to succeed himself.
Should he fail. It is expected
that Sig Petffni will name a
leading Christian Democrat.
Beyond that, the prospect of
elections looms large.
Both largest parties, the
Christian Democrats and Com-
munists, are anxious to avoid
an electoral battle at This stage;
the former because Sig Ciriaco
de Mita, leader for just three
months, is trying to push
through a major internal
re-organisation, while the Com-
munists are still jn some dis-
array following the Polish
crisis and January’s rift with
Moscow announced by Sig
Enfico Berlinguer, the PCI
leader.
Both trade unions, anxious to
press ahead with new wage con-
tract negotiations, and industry
are alarmed by the political
vacuum and prospects of elec-
tions.
Sig Vittorio Merloni, the head
Continued on Back Page
Editorial comment, Page 14
Railbus project to be approved
but BR lacks development cash
BY PHILIP BASSETT,
THE GOVERNMENT will an-
nounce soon its approval of a
new portion, of capital invest-
ment for British Rail — the first
for nine months and the first
since the start of the rash of
railway strikes this year.
However, even after Cabinet
approval, BR will he unable to
proceed immediately with the
work involved. Because the
financial effects of the strikes
have been so ‘damaging — BR
estimates they lost i-t about
£24i)m — BR does not have the
money for the project.
An announcement is to be
made soon, by the Department
of Transport, of Government
approval for the manufacture
of the double-car, lightweight
Railbus, which matches a bus
body to a BR-made chassis ro
run cm the railway. It is
powered "by a conventional
diesel engine.
Mr David Howell, the Trans-
port Secretary, has already sent
the terms of the Government’s
qualified approval of the scheme
by letter « Sir Peter Parker,
the BR chairman.
BR has known of the Govern-
ment’s decision for some time,
but an announcement has been
delayed because Ministers felt
it would create the wrong im-
Bristol-Severn Beach, Avon
link line. The Railbus has been
sold to Northern Ireland Rail-
ways.
However, BR said yesteday:
“ Because of its financial prob-
lems, the BR Board cannot say
when work will start on the
order.” This is a covert refer-
ence to the cost of the strikes.
which have been so financially
damaging that the Board has
not even the relatively small
amount of money— Efim-
needed to pay for the Railbus
programme.
A qualification to the appro-
val, which BR is now trying lo
meet, related to “future manu-
facturing options,” BR said yes-
terday. It is understood thus
means that no final decision has
yer been taken on which com-
pany should partner BR in
building the bus body. All the
prototype bodies have been
raanufacatured by Leyland
Vehicles (LV). BR and LV have
thus used spare manufacturing
capacity. A separate version of
the Railbus has been designed
for export
The new Railbus. when built,
would suceed the rapidly-
expiring Diesel Multiple Unit
(DMU) trains, which are BR's
workhorses on rural lines.
pwssion if approval of invest- Almost all of BR's 3.096 DMTJ’s
“J f >- Jpor -loftst Share Index plane 01-246 3026
ment were given while the
Associated Society of Loco-
motive Engineers and Firemen
were on strike over flexible
rostering.
The approval is to build 20
pre-production, two-car, light-
weight tran buses, based on the
design of BR's prototype Rail-
bus, which has been successfully
tested on tbe Ipswich-Lowestoft
line in East Anglia and the
are between 21 and 25 years old.
Senior BR officials believe
that the Railbus is crucial to
put many rural services into
profit, and thus keep them in
being. A Railbus can be pro-
duced for about a third the cost
of a DMU, and its fuel consump-
tion is about three times better.
Sir Peter Parker has seen the
Railbus as the resolution of the
problem of respecting tight
Treasury financial limits while
striving to keep open loss-
making rural lines.
Mr Howell's announcement
will mark the first Government
approval of BR investment
since £50m was made available
last December for East Anglian
electrification.
BR has before tbe Govern-
ment a case for the approval in
principle of electrification of the
main line on the East Coast, and
a firm submission has been
made for electrification of the
Hitchin-Huntingdon line. BR is
preparing a submission for the
Huntingdon-Leeds line.
The BR Board is about to
submit to Mr Howell its own
proposals for a 10-year rolling
programme of electrification,
which the Government re-
quested last year when it gave
cautious approval for a piece-
meat electrification programme,
linked step-by-step to improve-
ments in railway productivity.
British Rail categorically
denied yesterday that Sir Peter
Parker had been ordered by
the Government to sell Sealink
Ferries within 12 months.
“ There has been no instruction,
secret or otherwise,"
It was true that Sir Peter
had been asked to produce a
list of options and that Mr
Howell expects to have them
by early autumn, he added.
Denying a Sunday newspaper
report about the alleged instruc-
tion. the spokesman said: “ It
would not be a terribly sensible
thing to do because it would
rather make it a buyers'
market.”
There was nothing to stop a
sale within 12 months, however,
if an offer acceptable to all
parties were made, he added.
SHARE REGISTRATION
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OVERSEAS NEWS
Financial Times Mqariay As
* : y a /
S. Africa may temper Kwazulu deal
BY BERNARD SIMON IN JOHANNESBURG _
E South African Government ahead with the transfer of the Minister of Works, was assassi- African security detainee, Mr QrAQlt ITIOVC
_ < . - . ... „ _ J _ . Si, an TTmart rianolo nic riiafl in ^ ^
THE South African Government
may be willing, to compromise
ahead with the transfer of the
Ingwavuma district to Swaziland
Minister of Works, was assassi- African security detainee, Mr
natorf mi Saturday in an Ernest Decale. has died in
on its controversial decision to has been widely criticised both
cede a part of the Kwazulu in and outside the country- The
nated on Saturday in an Ernest Depale, has died in
ftmhn<4i near his home in the police cnestody. the head of
Refugees stream
West Beirut ‘gh<
tribal homeland to Swaziland.
According to weekend Press
reports, Pretoria has agreed to
appoint a seven-man joint com-
mission of South African and
Kwazulu Government repre-
sentatives to investigate the
land Issue.
The commission proposal was
reportedly discussed at a meet-
ing in Pretoria last week
betwen the Zulu monarch. King
Goodwill Zwelathini and South
Africa’s Prime Minister, Mr
P. W. Botha.
The King said be was satis-
fied with the outcome of the
leader.
Gatsha
northern part of the country.
Two other people were also
Buthelezl has warned of wide- killed in Hie modem, the latest
spread violence if the deal goes in a mounting wave of violence
ahead.
One possible compromise
being mentioned is that, instead
of transferring the whole of the
Ingwavmna region to Swaziland.
South Africa would cede only a
directed against Chief Leabua
compromise Jonathan’s Government,
that, instead Chief Jonathan’s country
the Security Police, Gen Johan
Coetzee said yesterday.
Gen Coetzee said Mr Depale
had hanged himself in his cell
at police headquarters in Johan-
nesburg, tbe same building
where Dr Neil Aggett, a trade
residence was attacked by gun- union leader, died in detention
Tngwavuma region to Swaziland, men last month. last January.
South Africa would cede only a The attacks were probably According to Gen Coetzee, Mr
narrow corridor on the Mozam- mounted by the Lesotho Libera- Depale had made a confession
bican border, thereby giving tion Army (LLA), military wing to a magistrate shortly before
Swaziland access to the sea. " of the banned Basutoland Con- bis death.
Swaziland access to the sea.
A settlement of tbe Ingwa- gress Pary (BCP) which aims
vuma issue would not. however, to overthrow Chief Jonathon's
solve the issue of the Kangwane Government.
“ homeland " in die Eastern
Transvaal, which Pretoria has
talks but no details were <fi s- said at also intends banding
closed.
South Africa's decision to go
over to the Swazis.
• Mr Jobo Rampeta, Lesotho
Chief Jonathon annulled an
election in 1970 when it
appeared that the BCP had won
a majority of the votes.
Mean while, another South
About 50 people have died in
police custody in the past 15
years. With the exception of
Dr Aggett, all have been black.
An inquest into Dr Aggetfs
death will be resumed in a
Johannesburg magistrates court
next month.
U.S. industry shows fi no
evidence of recovery’
Corsicans set to elect
first regional assembly
BY PAUL TAYLOR IN NEW YORK
BY DAVID MARSH W PARIS
of any pick-up m U.S. industry." raised prices, up from
suggests a gloomy report, pub- cent the previous month.
FRENCH POLLING managers electors, called upon to choose
were yesterday pinning hopes a new regional assembly, faced
lished today, by the National
Association of Purchasing
Management
The report says new orders,
which are vital to industrial
activity, are continuing to fall
28 per cent said prices were
lower, compared to 30 per cent
in June.
The association’s report also
reveals that inventories are
con tinuing to decline although
the decline in July was about
for the success of the Corsican a confusing line-up of IT
regional elections on the after- different “ lists ” of candidates
noon break in the hot sunny competing
weather which it had been seats,
feared would keep voters on the The ele
beaches. two yean
assembly
The election is taking place
two years ahead of similar
and suggests that 36 per cent of Iff “““ mjuiywas aoouc
the 250 companies surveyed last
month said summer shut downs t* 12 * ra Y material stocks
were expected to be topper than m e „ Ve i? = m0n,h
usual this vp nr This rnmnartm ^ or past 34 months.
turnout rate had risen to 57 per P”? ° f * e
cent from 29 per cent registered *$**;*.
usual this year. This compares
with 6 per cent last year and 7 At tbe same time, the survey
per cent two years ago. shows that purchasing managers
_ .. _ remain cautious about how far
Overall the association s index ahead they commit their com-
industrial _ activity suggests panics. The report says that
at the decline in the U.S. »• buying off the shelf ” when
“E** was . J®?* shar P needed is still prevalent
mth than in June but that ^ .
oductlon is still falling. *. °® employment the associa-
bon says that in July only 5 per
The association says the only cent of companies surveyed
/ourable sign to emerge from reported bigger payrolls, down
The performance of the
at midday, according to erti- |UtOQom ^ candidates who have
mates by the Interior Ministry.
returned to the voting lists —
The Government is hoping for although the FNLC is staying
a relatively high turnout on the away— will help gauge the
of industrial activity suggests
that the decline in the U.S.
economy was less sharp last
month than in June, but that
production is still falling.
island— where abstentions are strength of nationalist feeling.
traditionally high— «n tine with But national lessons will be
its aim of “ politicising" at hard to draw. The Right-wing
least part of tbe Corsican opposition parties have tra di-
autonomist movement tionally been strong in the
The association says the only
favourable sign to emerge from
Political campaigns in the south of the island. But the
past have often been fought as Socialists are under-represented
its survey is that slightly more from 8 per cent in June, wbtie
companies appear to have been 43 per cent said employment
By Jimmv Bums in Buenos Aires
ARGENTINA has again
declared Its intention of
renegotiating part of the
$15bn (£8.7bn) payments due
on its external debt of
S36.6bn by the end of this
year.
Bnt there is still no sign
emerging from Buenos Aires
to dampen fears that Argen-
tina might default on its debt
in the face of the economic
sanctions still maintained by
Britain.
Sr Domingo Cavallo, the
governor of the Argentine
central bank confirmed at a
weekend Press conference
that Argentina was seeking
new commercial credits from
international banks rather
than a standby credit from ,
tbe IMF.
“But the return to Argen-
tina to tbe international
money markets will depend
on the degree of under-
standing we find among 6 nr
creditors," Sr Cavallo said.
Argentina has, however,
reportedly been told by inter-
national bankers that no
formal negotiations on fresh
credits can get under way as
long as the UK assets freeze,
imposed at the start of the
Falkland^ crisis, remains In
foree.
Sr Cavallo estimated that
Argentina eonld repay about
half of the 32A3hn of interest
dne on its total foreign debt
in the second half of this
year without international
assistance. Tbe central bank
is predicting a second half
trade surplus of S1.3bn. Sr
Cavallo is forecasting a trade
surplus of $3.12bn for the
whole of 1982. The country's
total reserves at the end of
Jane are pat at $3.69bn.
Argentina is also due to
repay $10.23bn of borrowed
capital and $2.31bn of debt
arrears by December 3L
BY NORA BOUSTANY IN BEIRUT
ATT) a Hannoun, and her teen- creased tenfold. Hie usual rate
age daughter, Rana, dazed and of L£0 per passenger to tne
Palestinian refugee i
-•¥V
*
■f.js; . .
. it’
» •
■ / . “
*1-
l’
i#
r i
... ,
.j . i
. if.fi
• C »■
V*, lax
•• -
hurt, dragged their suitcases as
they arrived at the Galerie
Semaan crossing from West
Beirut yesterday.
Breathless, having walked
ases as port city of Sidon has now
Galerie jumped to L£60, for a shared
West ride.
The military police, in no
walked cheerful mood, nervously
shooed residents way from. the
under Beirut's scorchmgAu^t lines
sun for hatf an 1 along the road, blocking entiy
Hannoun said she had left her - T>a; n ,f
home near the Bristol Hotel
■off Verdun Street in West
Beirut because buildings near
it were bombed and “ there is
into West Beirut
Galerie Seamaan was the
only way out of that beleag-
uered part of the city yesterday.
A museum, located on the
no water, no food, no eleo
maty.’
“ It’s like a ghost town,” she
added, gasping for breath. A
stream of refugees, in no better
held no man's land strip and
the Beirut harbour, was closed
for the day.
Motorists were ordered to
condition, foUowwl her Hel- 200 yariS M of
meted military police with red H
Galerie Seamaan — in fear
armbands from the Lebanese ^ bomta where crowds of
forces, an alliance of Christian
militias, checked luggage and
travel documents at tihe strictly
supervised exit from West
Beirut.
Residents had started arriving
people were gathered. Opposite
the checkpoint, about 100
people waited in the sweltering
beat for friends and relatives
to arrive.
Most Lebanese in the beseiged
before orders were given to capital hived to join families or
work .in homes as t charwoman,
but now all the -fbsodUfls who
employed roe have left. How am
I going to feed my children?"
Most refugees said they came
from LailakL CShiah or Hay r al
Sullotn, all areas on tim south,
eastern outskirts of the city,
in the line of fire of Israeli
gunners and Palestinian
guerrillas entrenched north of
Beirut airport
Several famtties were Tanning
away from. Samyeh. where
Israeli jets’ tomhed an eight-
storey boaldiag last Friday,
killing and wounding an.' esti-
mated 150 people
Most of The guerrillas had Mr '
the area and moved on hot oW
people with no means to travel,
bad stayed behind, tiieysald.
. Clu tching nylon begs, -and 1
ushering a young mother with
a baby in her arms, Elwan
Hussein said he was going home *
to Iraq, but wouM first stop in '
Damascus. Wben approached,
open the crossing to traffic so
bundles of belongings, suitcases,
television sets and mattresses
bad to be hand carried.
Eager taxi drivers clamoured
around. . grabbing tbe baggage
of potential passengers before
asking. The local taxi business
is thriving. Fares have in-
friends redding to the moun- the youngmofher tmnUed and
tad ns around Beirut or in south
Lebanese villages.
Hajjeh Shukr, 44, a widow and
mother of four, however, said
she was heading for Baalbeck,
where she heard there were
refugee centres. Hajjeh's home
in Hay al Sullom, bordering the
hid her face. “I am going no-
where. I am from Jordan," die
stammered.
w Please let me take care of
my baby," she pleaded. Her
edginess and hesitation were
not surprising. She had a
Palestinian accent.
PLO fighters ready to pull out
BY JIM MUIR IN WEST BEIRUT
THERE CAN be little doubt
that over the past two months
offered by the PLO
lished in its own -internal hews-
of blockade, bombardment and Philip Habib, the special U.S.
indirect negotiations with Mr paper, Ftiastizx al-Thawra, yes- }
tt l_ i al. TT C tAf^nir Tf iivinliorl thn rfwwitfbaef 1
able to increase their prices.
About 10 per cent of the com-
was lower, compared with 45
per cent in the previous month.
much by bombing as through . in Corsica compared with arrears by December 3
the ballot box. But indications national level, the main Left-
yesterday were of a relatively wing party being tbe MRG, the Talks Oil Namibia
trouble-free poNing day. minor radical partner in __ ,
political haggling, the PLO has
been dragging its feet and cling-
ing on in Beirut, in the hope
that the cavalry would arrive in
envoy, which have made the
present evacuation plan a real
possibility — provided the
Israelis can be induced to accept
the shape of Arab military and the PLO’s one cardinal condi-
economic action. There can be tion.
trouble-free poNing day.
Just over 200,000 Corsican Paris coalition.
Armenians killed nine in Ankara gun battle
BY METIN MUNIR IN ISTANBUL
THE RAID on
Esenboga Airport
Ankara's men and a terrorist. Tbe second way back from Tehran, where
by two terrorist is in hospital recover- he offered to mediate in the war
Middle East. The first murders
were committed by an old
Armenian gunmen last Saturday ing from bullet wounds. He will between Iran and Iraq. His air- Armenian in Los Angeles. He
violent and go on trial for his life.
craft was diverted to a nearby
audacious act of terror to be The authorities are keeping .military airport.
staged by Armenian terrorists tbe identities of the terrorists.
in their nine-year-old campaign believed to be non-Turks,
of vengeance against Turkey. secret. ■_ :
Officials said nine people lost There was speculation ti
their lives and more than 70 the raid ~ could have been
were hurt in the event which badly timed attempt on the I
believed to be non-Turks,
secret. - ■ *
There was speculation tiiat
the raid ‘ could have been a
The two terrorists are
believed to be members of the
killed two Turkish diplomats at
bis -dinner table. -
The terrorist groups have
said, that -|heir purpose -is to
Armenian Secret Army for the .take revenge against -the
Liberation of Armenia (Asala), "massacre of -their brethren io
started when the gunmen threw of Mr Bulent UIusu. the
bombs and opened fire indis- Turkish Prime M i nis ter, who
badly timed attempt on the life violent of the half dozen such
of Mr Bulent UIusu, the terrorist organisations.
one of the most active and Eastern Turkey in ■ the early
violent of the half dozen such part of this century by Ottoman
terrorist organisations. sultans. They also want Turkey
Armenians have murdered 21 to cede what they claim to be
The six “front-line** African
leaders have called on
Western nations trying to find
an acceptable formula for the
independence of Namibia
(South-West Africa) to stop
raising the issue of Cuban
troops in Angola, Renter
reports from Tripoli.
Tanzanian Foreign Minister
Salim Hohamed Salim, quot-
ing the leaders at the week-
end, said the prospects for
negotiations were “ bright **
bnt said the question of
Cuban troops was not related
to a call by the Security
Council for be independence
of Namibia.
special U.S. terday. It Implied the strongest {
e made the censure of Syria, the Arabs and •
. plan a real the Russians, for failing to goj
ided the beyond empty words and croco-
iced to accept dile tears, in their support for
rdinal condi- the Palestinians.
“We took the decision to
international withdraw militarily from Beirut
equally little doubt that, now That is that international withdraw militarily from Beirut
that it is clear there is no forces should be on hand dur- because, after the blatant Arab
cavalry in the offing, the PLO is ing the Palestinian withdrawal, fecklessness, the destruction of
sincere in its declared willing- or most of it, for fear of a mas- Beirut over the heads of half
ness to pull all its forces out sacre at Israeli hands when the a milli on Mu sl i ms was no longer
of Beirut fighters pull back and regroup. just a possibility, it was an
This has been evident from The PLO’s sincerity was established fact," the paper
the sudden spate of concessions attested in a bitter editorial pub- wrote.
ness to pull all its forces out
of Beirut
This has been evident from
the sudden spate of concessions
a million Muslims was no longer
just a possibility, it was an
established fact," the paper ;
Mexican peso
devaluation
‘averted default’
By Ronald Buchanan
in Mexico City
e • S
/ Al
French uranium offer
criminately in the airport’s over- was due to arrive -at Esenboga
seas departure lounge. The dead about the time the carnage
Armenians have murdered 21 to cede what they claim to be
Turkish diplomats or their their motherland, a mountain-
included three Turkish police- started. Mr UIusu was on his
dependents since 1973 in the
UB., Western Europe and the
ous and remote area in the
east, bordering Soviet Armenia.
Tick?
Talk:
Brand-new production and office
space from about £1.50 a sq.ft.
Rent-free periods available.
22% Regional Development Grant
if I want to build.
Further cash assistance on fixed
capital assets and new plant.
Low-interest European loans for
up to 50% of cost, of fixed capital
assets.
First class labour force.
Grant assistance for office and
service industries.
To the Chief Executive Officer, The g
Guildhall Wrexham LL 11 LAY, Clwyd, j
North Vfeles, or Bob Dutton, Des Jones or |
M Claude Cheysson, French
Foreign Minister, yesterday
expressed his country's
willingness to supply the U.S.-
built nuclear power station at
Tarapnr, in the Indian state
of Maharashtra, with enriched
uranium without Insisting on
foil international inspection
of all India's nuclear facilities,
K. K. S harm a writes from
New Delhi.
The French supply of
enriched uranium was cleared
during Prime Minister Indira
Gandhi’s recent visit to the
U.S. following Washington’s
refusal to continue shipments,
despite a 30-year agreement,
because of its policy on
unclear non-proliferation.
Heini Prabram at Wrexham (0978)
364611.
Surrender deadline
Please send me your brochure and
cassette showing why expanding
industries in Wrexham have invested
over £100 millions in the Borough.
Name
Address :
Kenya’s Defence Depart-
ment has reported that a
“ substantial ” number of air
force personnel have not
beeded the government order
to surrender following last
week’s coup attempt It has
given them until 6pm today to
give themselves np, AP re-
ports from Nairobi.
Tokyo peace bid
Company!
TWO senior Japanese officials
yesterday left for Peking to
try to settle the row over new
Japanese school textbooks
glossing over the country’s
war record, Reuter reports
from Tokyo.
Wrexham
Summit switch call
Britam’s m ost cen tral
SPECIAL DEVELOPMENT
AREA. C
Caban President Fidel Castro,
current head of the non-
aligned movement has ealled
for a meeting of foreign
ministers this month to dis-
cuss moving the movement’s
September summit due to he
held in Baghdad, Renter
reports from Havana.
MEXICO WOULD have had to
default on its SSObn (£46bn)
foreign debt but for last week’s'
official devaluaiou of the peso
and partial imposition of
exchange controls. President
Jose Lopez Portillo, said at the
weekend.
Sr Lopez Portillo was speak-
ing at specially convened
meeting of the cabinet, labour
and business lears, and the
editors of national newspapers.
The meeting was an indica-
tion of the gravity of the
financial crisis. Sr Lopez
Portillo admitted that an earlier
devaluation, in mid-February,
“didn’t solve the problem; on
the contrary it made it worse ”
by unleashing a wages-prices
spiral.
The new devaluation — a free
float which saw the peso drop
at first by 30 per cent, against
the dollar — was accompanied by
teh introduction of a Govern-
ment-supported preferential
rate on essential imports.
Sr Lopez Portillo defended
this breach of Mexico’s tradi-
tion of exchange freedom on
the grounds of national interest.
The Government, he said, could
not continue to subsidise the
purchase of dollars for non-
essential purposes. CJ tizens
would still be free to buy pro-
perty abroad, he said, “but let
their dollars cost them what the
imprudence of the Mexicans set
as the price.”
The President traced the
most immediate problem back
to tb e announcement, a week
ago. of sharp increases in- tbe
controlled prices of basic goods,
such as petrol and tortiHas.
Fears of an inflationary spiral
has led to a flood of “ hundreds
of millions of dollars out of the
country in just a handful of
days."
Lloyds Bank
Home Loan Rate
With effect from
Monday, 9th August 1982,
Lloyds Bank Home Loan Rate
will be reduced
from 13-5% to 12-25% p.a.
APR 12 -8%
Lloyds Bank He, 71 Lombard Street, EC3P3BS.
Tokyo Pacific Holdings N.V.
Tokyo Pacific Holdings (Seaboard) N.V.
The Quarterly Report as of 30th June 1982 has been ,
published and may be obtained from:
Pienon, VMdring & Pfenon N.V.
Herengracht 214, 1016 BS Amsterdam
SaLQppenhebnfc&Cia.
UnterSacfi senti ausen 4, S Koln
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■ Pinancial Times Monday August 9 1982
U.S. disappointed at
progress in opening
up Japanese market
BY RICHARD HANSON IN TOKYO
A TOP U.S. arade official, after
four days of talks in Tokyo,
said yesterday that very few
new market openings were
apparent, an d few trade prob-
lems completely resolved, since
the Japanese Government
announced a second import
liberalisation package in May.
Mr James M. Murphy, Jr.,
assistant U.S. special trade
representative, said, however,
that the "dialogue” with the
Japanese Government on imple-
menting various parts of the
trade package was being taken
very "seriously." a
Changes in Japan's customs
clearance procedures, part of
an earlier trade package by
Japan, was' one example of the
" bright spots " of progress
over the past year or so.
The U.S. is unhappy with the
slow progress in resolving other
trade problems. The issue of
cigarette imports was 'given as
one example.
The strongest criticism, how-
ever, was reserved for Japanese
behaviour in the area of
industry cartels and import
associations which U.S. officials
say present barriers to goods
from outside the country.
U.S. ceputy assistant Secre-
tary of Commerce, Mr Clyde
Prestowitz, expressed strong dis-
approval of the way the Japa-
nese Government enforces anti-
monopoly laws. The Japanese
Fair Trade Commission (FTC)
has the "righf and responsi-
bility” to enforce these laws.
Specifically, the U.S. com-
plained about proposed import
associations for the petrochemi-
cal industry.
Import associations for indus-
tries such as paper and pulp
and timber also came under fire.
Mr Murphy urged the Japa-
nese Government to revise a
law which allows depressed
industries .to form cartels.
Japan has, in various forms,
about 490 cartels, the U.S. side
complained.
The U.S. delegation is a
working committee of the U.S.-
Ja pan subcommittee on trade, J
which was established last year.
Mr Murphy said the mission
would visit Japan frequently,
perhaps each month, to con-
tinue talks on implementing
parts of the 'import promotion
package and other unresolved
trade problems.
In October, the two sides will
begin, an important round of
negotiations on liberalising the
import of beef and oranges.
These, and other agricultural
issues, have in recent months
become the focus of the simmer-
ing bilateral trade dispute.
Export credit subsidy cut
by fall in interest rates
BY PAUL CHEE5ERIGHT
GRADUAL but significant
savings of public money used
iu subsidise fixed rate export
nuance— about £lbn over the
last two years — have been fore-
shadowed by the downward
movement of interest rates.
This movement has taken
place as the international
guidelines for export credit
interest rates have moved
upwards, thus narrowing ■ the
gap in costs to be met by the
Treasury through the Export
Credits Guarantee Department
(ECGD).
. The interest rate paid by
banks to obtain funds for
export finance averaged 12.143
per cent for the period July.lfr
to August 3, according to ECGD
which, published last week for
the first time a new inference
rate. -
The reference rate will be
calculated each month on the
basis of the experience of six
banks active in the export-
finance sector.
Eut the borrowing rate for
countries granted export
credits, since July 19, has
ranged from 10 per cent for
relatively poor countries to
12.4 per cent for relatively rich
countries taking credits with a
maturity of longer than five
years.
This is the first time in
recent years that • British
domestic interest rates have
been so nearly aligned with the
permissible minimum export
credit interest rates under
international guidelines.
- " The gap between the cost of
nf rt.iinin g funds for fixed rare
export finance and the charge
to borrowers of export credits
was at one stage as high as
seven percentage points.
■ The result of This gap has
been a steadily increasing
Treasury subsidy. In the year
to last March it is estimated at
more than £50 0m. In the year
to March last year it was £461m
and in the year previous to that,
£3 57m-
Airbus
deliveries
to Libya
delayed
By parid White in Pam
MAINTENANCE OF a U.S.
embargo on supplies of civil
aviation equipment to .Libya
is bolding up deliveries on an
Airbus contract estimated to
be worth some $500m
(£292m>.
Airbus Industrie, the joint
venture based at Toulouse,
has been particularly secretive
about the Libyan order And
has never published target
delivery dates.
However, trade reports at
the end of last year, when
news of the contract first
leaked out. said that the first
two aircraft were scheduled
for delivery In June this year.
The order, which has since
been listed in Airbus Indus-
trie’s .official sales tables,
involves six A3 00 Airbuses
»Tid four of the smaller A310
aircraft, which are not due
for certification until March
next year. Ail are firm orders.
According to the reports,
the remaining aircraft were
to have been delivered at a
rate of two per year to
Libyan Arab Airlines.
Engines for both the A300
and the A310 are supplied by
either Pratt and Whitney oc
General Electric of the U.S.
There is no other alternative
M glwB,
1116 partners in the bnild-
ing of the Airbus are Aero-
spatiale, ■■ the - State-owned
French concern beaded
by President Mitterrand’s
brother. General Jacques
Mitterrand; Messerschmitt-
B5Ikow-Biohm of West Ger-
many through Deutsche Air-
bus; British Aerospace; and
the Spanish concern CASA.
Fokker of Holland and Belair-
bus of Belgium are associate
partners.
Philippines
wooed by
Moscow
T^TTr^rfroT iiTnj j ' - i j" - ^
WORLD TRADE NEWS
Paul Cheeseright looks at the likely EEC challenge to Reagan’s controls
Pipeline embargo prompts legal misgivings
France’s Kier group wins
£54m Hong Kong contract
BY OUR WORLD TRADE EDITOR
TtfJ* V ' ,:
*»*••:*—
i ?
KIER International, part of the
French Kier group, has won a
£54 in contract, in a joint ven-
ture with Gammon (Hong
Kong), to build the cooling cir-
culation system for China Light
and Power's Castle Peak 14 B ”
power station in Hong Kong.
Tenders for the order were
called by China Light and Power
about five months ago. Follow-
ing the initial submission. Kier
and another contractor were
called in for further technical
and commercial discussions.
The main apposition to Kier
winning the contract is. thought
to have come from Japan. But
Kier’s contract emphasis the
dominance of British companies
at the Castle Peake “B ” devel-
opment.
GEC is the main contractor for
the project and Babcock Power
the main sub-contractor. Financ-
ing of $1.8bn was arranged in
the City of London.
In the case of the cooling
system contract however, fin-
ance is being arranged by China
Light and Power a nd n o export
credits from the UK are in-
volved.
Kier, which has been working
in Hong Kong consistently for
the last seven years, as an equal
partner with Gammon in the
joint venture but r em a in s the
sponsoring company and will
provide the senior management
for the contract.
The two companies have
worked together before, most
recently on stations and tunnels
for the Hong Kong Mass Transit
Railway Corporation. The
advantage for Kier of such an
arrangement is that it enables
the quick mobilisation of local
resources in the build-up to
executing .the contract.
|A i ‘
,-r 4 ,
C -i • * '
i-
0 CHINA’S
GUANGDONG TEA
The foliowing kinds of products are being
.handled for export by us, the Guangdong
Tea Branch and its Swgtow office and
HainsUi office:'
Black tea, green tea, scented tea, oolong
tea; pu-em tea, beeng cha, tou cha, lemon
tea, kooloo tea, canned drinks and a
variety of teas in small packages and
specialized in handling the import and
export business of coffee and its pro-
ducts. Each item has its own special
characteristics and is welcome by con-
sumers both athome and abroacf-
CH1NA NATIONAL NATIVE PRODUCE & ANIMAL
BY-PRODUCTS IMPORT & EXPORT CORPORATION
‘ GUANGDONG TEA BRANCH
Address: 17-19 Sha Jf Dong Yue, Liu Erh San Road,
- . -Guangzhou, China ' ,
Tfefec <44120 GDTEA CN ' .
”:t^erNAITONTEA Guangzhou '
By Our Manila Correspondent
-THE Soviet Union, after
years of trying is on the
verge of gaining a toe hold
in Philippine industry and
investments.
Manila’s Board of Invest-
ments (BOI) has cleared the
way for the Soviet Union to
begin feasibility studies for
a 1m ton coal-fired cement
plant to be built in the tiny
island of Semirara, off Negros
Island in Central Philippines.
The project holds ont the
prospect of a barter arrange-
ment whereby the Philippines
could pay for the plant with
coconut oil, an attractive
scheme at a time when the
country Is finding difficulty in
getting foreign loans and its
commodity exports are de-
pressed.
The Soviet entry means
that a similar plant with the
same capacity planned be-
tween a British company,
Philipp Brothers, and a local
conglomerate. Construction
. and Development Corporation
of the Philippines (CD CP),
has dropped a notch down, a
board official said.
The British-Philippine
joint venture Negros Cement
Company, initially estimated
at 558.8m (£34. 4m) has been
asked to delay the project by
one year till 1986 to give the
Soviet Union a headstart, the
board official added.
The board indicated that
the decision to let the Soviet
i Union in was a political
| decision.
The financing terms are
still to be negotiated with a
Soviet team this month, Mr
Roberto Ongpin, the Minister
for Trade and Industry,
announced.
The Soviet entry, however.
Is being treated with great
caution, mainly because of
security considerations.
The Philippines, a dose ally
of the U.S. which maintains
two large bases, has been
resisting Soviet advances for
closer commercial ties for
years.
On the state of Soviet tech-
nology, Mr Ongpin was quoted
as saying that its cement pro-
duction capabiliies were
"quite adequate.”
He expressed confidence
that the Philippines, which
has long been a cement pro-
ducer, has tiie technology to
double-cheek the Soviet-
designed plant
It was on the strength of
security objections that the
Sorter Union lost is first bid
to build a 300 MW coal-fired
power plant in Batangas pro-
vince, south of Manila. It was
awarded to Marubeni of
Japan.
Board officials said the
power plant would entail
Soviet technicians staying In
the country for at least five
years.
BUILDING SOCIETY
RATES
Every Saturday the
. Financial Timas
publishes a table giving
details of
BUILDING SOCIETY RATES
-on offer to the public
For advertising details '
pit ate ring:
01-248 8000 Ext. 3606
THE EEC's legal challenge to
the Reagan Administration's em-
bargo on ■ supplies for the
Siberia-West Europe pipeline
chimes with an internal debate
which has been taking place
within the U.S.
U.S. lawyers, in and outside
the Reagan Administration, have
expressed misgivings about the
legality of the embargo, not only
in terms of the conflicts in-
volved with European powers,
but <in terras of its consistency
with U.S. law.
Some of these misgivings,
marshalled into legal argument
with the appropriate citing of
precedents, will be used by the
EEC when, probably later this
weex, it sends to the Commerce
Department in Washington a
firmly worded critique of the
embargo.
The Reagan Administration's
legal vehicle for the imposition
of the embargo is the Export
Administration Act 1979.
The policy written into the
! Act is that there should be con-
1 trols <m U.S. exports only when
exports make a military contri-
bution to another country that
could affect U.S. security and
when controls are necessary to
further U.S. foreign ohey.
This opens the way in the Act
SHIPPING REPORT
to provisions for the grant of
export licences and the steps
necessary for the Secretary of
Commerce to take in the imposi-
tion of national security or
foreign policy controls.
The, pipeline embargo was
imposed as a foreign policy
control- In its two stages, the
embargo has extended the lost
of oil and gas equipment and
technical data available for
export to -the Soviet Union. It
has expanded, the export and
re-export control regulations to
apply to U.S.-owned or con-
trolled foreign firms. It has
extended control to U.S.
licensed products.
Expectations
So the question has been
immediately raised as to the
validity of contracts signed by
European companies, like John
Brown Engineering of Clyde-
bank, to use U.S. technology
and to buy goods from the U.S.
for onward transmission to the
Soviet Union. The contracts
were in place before the
Reagan Administration imposed
The embargo.
Mr Douglas Rosenthal, a
former senior official of the
U.S. justice Department, noted
to the Senate Judiciary Com-
mittee last March that contract
provisions are construed in
terms of the reasonable expecta-
tions of the contracting parties.
But many U.S. export con-
tracts have in them, to protect
U.S. sellers, a provision that
the recipient of the goods or
technology will abide by the
U.S, export and re-export
regulations.
Mr Rosenthal suggested the
idea of the U.S. licensor having
a perpetual veto over future
use of the technology in
anticipation of possible future
export controls is dubious.
“It is even more doubtful
that such a private contractual
right by itself can validate, as
a matter of law. any new, not
easily anticipated. U.S. controls
over the foreign licensee.”
But the EEC will take this
point further. In its comments
on the embargo to the Com-
merce Department, it will argue
that insofar as such terms of
contract are * operative, they
work as a matter of civil or con-
tract law.
This does not mean, the EEC
will say, that they have the
effect of extending U.S.
sovereignty outside the U.S.
Sovereignty is not negotiable.
In turn this strikes into tfie
heart of the argument between
the U.S. and the European
powers with contracts for the
pipeline affected by the
embargo. This is the degree
to which the U.S. can legiti-
mately extend its jurisdiction to
control economic activity and
policy outside its borders.
Consequences
“ Congressional intent with
respect to proper exercise of
jurisdiction by the executive
branch (of the U.S. Govern-
ment) is not crystal clear,” said
Mr Rosenthal with references
to the Export Administration
Act But Congress did not
write a blank cheque.
Congress did not say that
U.S. law could be applied
regardless of the consequences,
regardless of whether the laws
of other nations would be over-
ridden, and regardless of what
U.S. law would say if the situa-
tion was reversed, Mr Rosen-
thal observed.
His argument was that use
of the 'Act, when it affected
other nations, needed to be ■
consistent with “ the conflict of
laws principle of jurisdiction,
applied by U.S. courts when
U.S. extraterritorial enforce-
ment is sought in litigated i
cases.”
This is a reference to the
1976 Timberlane case judgment.
It said that the national
interests of sovereign powers
had to be balanced. Put another .
way, the U.S. should not seek ,
to exercise its laws, outside its .
borders, unless its interests '
outweighed those of the foreign •
powers involved.
In the pipeline case. France,
Germany, Italy and the UK —
the countries most affected by
the U.S. embargo — would inevit-
ably argue that their interests
with some £5bn of business at
stake, not to speak of gas
supply contracts, are more
closely involved than those of
the U.S.
They will also note, like
Mr Rosenthal, that the foreign
boycott provisions of the Export
Administration Act forbid those
under U.S. jurisdiction to
comply with the foreign export
controls of nations seeking to
implement foreign policy at
U.S. expense.
World Economic Indicators
Market suffers summer slump
RETAIL PRICES
<1975=100)
BY ANDREW FISHER
THE SHIPPING world is going
through a bad touch of g amm er
blues. The trouble is that the
same was true of last year and
no improvement seems in
sight
Weekly shipbrokers 1 reports
have long made for some fairly
dismal reading, not the sort of
stuff to set you up. for the
weekend.
The latest batch is no excep-
tion. Galbraith Wrightson, talk-
ing about last week's tanker
market, said: “As things are
today, it looks as though the
patient now needs the ‘ kiss of
life * to enable it to pull
through.”
With the summer holiday
season in full swing, trading
has been slack in a market
which has already suffered long
and painfully from low charter-
ing rates.
ance rates have risen, and
other Gulf ports remained.
Dry cargo rates, which have
slumped recently from already
low levels, showed signs of
stabilising.
June -82
May *82
Apr. *82
June ’Bl
% change
over previous
year
UK
239.5
236.9
2373
219.4
93
W. Germany
1363
1353
134J5
1293
5.8
France
208.9
207.4
2053
184.0
133
Italy
2922
289.4
2863
2533
15.1
Netherlands
152^
1523
152.1
1433
63
Belgium
750
757.4
1S6J)
1443
9S
US.
May ’82
178.1
Apr. *81
1763
Mar. *82
175.6
May *81
1663
63
japan
Apr. *82
147.1
Mar. *82
146.0
Feb. *82
145.7
Apr. *81
1433
2.7
Source (except UK):
Eurosrst
QE2 ANNOUNCES HER
AROUND THE BAY
Wmim
‘TKy&Siif
jC
m "mw
vcernP
to
'doo^js^iNds
The bay is the Pacific Ocean. The trip
is QE2s Circle Pacific Cruise. The most
spectacularholidayof]983.ItstartsinLos
Angeles onjanuary 31st, takes in most of
the" places people only dream of visiting
and returns on April 2nd.
QE2 will be in great shape for it
Luxury, comfort and pleasure on board
will be unequalled.
The cuisine . will be particularly
superb. Top chefs will be coming aboard
en route to prepare local delicacies. And a
host of top celebrities and entertainers
will amuse and entertain you all the way.
There are so many ways to join and
enjoy the trip too. We can fly you to Los
Angeles and back free. Or if you prefer to
sail there and back we can arrange it
Prices for the full 61 day Circle Pacific
Cruise start at f 5,600. There are plenty of
shorter sectors to tempt you too.
: ‘ For example, starting in Los Angeles
and disembarking in Singapore costs
from £3.350.
Or you may choose to join one of our
Panama Canal Cruises instead. These
take place immediately before and after
the Circle Pacific. (Prices for 14 days start
at £1295 including round trip air fare).
Whatever you choose, don t miss ihg boat
I I'd like io fcncrcall about QF2s trip around the bey. j
, Please send me a Circle Pacific Cruise brochure. !
I Mr/Mrs/Miss 1
I ... tBLOCK CAPITALS I
Address I
riel. No
Seeyour trawl agent or post the coupon to Cunard
LineLtd. South Western House. Southampton,
S0913A or phone 01-491 j9jLL
1 _ClRCLE^CIFIC_CRUlSEFrjs|
V
4
•_
UK NEWS
-• .5r-.r r vc^^
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Financial Times Monday Augast;
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week,
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suggeste
Jabihika
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Australia
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Commercial plan Jr?"?®
hdp fund
for land agency Glasgow
BY WILLIAM COCHRANE
BETWEEN 25 and 30 per cent perty in the interests of “saving
of the work of the Property money for the taxpayer," Mr
Services Agency could be hived Alfred said-
off into a commercial property The PSA has reduced its staff
division if the ideas of Mr from 50,000 in 1972, and 39.000
Montague Alfred, its chief m 1979, to 30.000 in April of:
executive, are put into practice, this year. It has realised £200m
Mr Alfred put his proposals from the disposal of assets over
to PSA staff a month ago. the past three years.
The PSA has been troubled Mr Alfred said he expected
in recent years by allegations Government cuts in the Civil
of fraud and corruption which Service to release 64m sq ft of
Mr Alfred bas described as office property in London alone,
minor in relation to its size. It and between 1980-86. This would
has general responsibility for save about £5Qm in r unning
meeting the needs of central costs and reduce office space
government; the armed services from 33m sq ft to about
and other public sector clients, 27m sq ft
for land, accommodation, fixed 0 i^ e Nationwide Building
installations and associated Society, Britain’s third largest,
supplies and transport services, issued £10xn of negotiable bonds
Mr Alfred said at the week-
placing on the London
end that the PSA had a total Stock Exchange last Friday. The
annual spending of about amount has been increased from
£2.2bn, 65 to 70 per cent of original issues of £5m Oast year,
which went on defence services, rising to £7.5m.
He saw the possibility of This is Nationwide's 16th
applying objective performance negotiable bond issue since
criteria to 80 per cent of its July 31 last year, in line wi^fa
civil estate, and perhaps 20 per its plans to use the money mar-
cent of the defence estate. This kets to supplement its normal
would give the proposed supply of funds. The society bas
property division an asset value raised £9 5m by this means;
of between 13 bn and £5bn. £30m <last year against an
The property division would original target for 1982 of
seek to apply current market £l20m.
rents, rent reviews every three, Nationwide plans to continue
five or seven years, extension of making regular issues of the
maintenance responsibility to bands and will increase further
the tenant, and over the period a the amount placed ou each occa-
departmenrtal tenant would ex- si on. subject to Bank of Eng-
pect to require a specific pro- land approval
show centre
By Alan Forrest
GLASGOW DISTRICT Council
is to contribute £6m towards
the cost of a new £30m Scot-
tish Exhibition Centre in the
city’s dockland.
The project is expected to
create 500 jobs during con-
struction and 30 full-tune and
500 part-time posts when the
centre opens.
The 64-acre site at Queen's
Dock, Ffnneston, was chosen
by the Scottish Development
Agency (SDA) from 49 pos-
sible locations. Its position
will tie in with Glasgow 1 ®
rapidly-developing hotel
accommodation — the Holiday
Inn and the Grosvenor are to
open this year, work on the
Skean Dim in Renfrew Street
is. still in progress and the
Sheraton chain is seeking a
city location.
A further, 200-bed, three-
star hotel is planned for the
exhibition complex, which is-
to provide 20.000 sq mtrs of
exhibition space— a main hall
to hold np to 10,000 spectators
and a range of smaller halls.
Private investment in the
project was a condition by Mr
George Younger, Secretary for
Scotland, on his support. The
private sector and the SDA
will each pay £6m towards the
£lSm construction cost, with
Glasgow District and Strath-
clyde Region to provide £3m
each. 1
Analysts gloomy on
economic recovery
BY MAX WILKINSON, ECONOMICS CORRESPONDENT
CITY analysts are taking a taken by the broker. Oapel-
genenrHy gloomy view of the Cure Myers, which expects zero
immediate prospects for the growth tilts year and only -f
UK's economic recovery in the per cent improvement in output |
latest batch of forecasts pub- next year. Its pessimism is
lished today. However, they see based partly on Ibc view tha*
“X" °d
Witt-w p , ESSZ'ZZglVE
The stockbroker. James capel, nessin ^ stic abolrt the extent to
says in its LfK Economic Assess- companies will increase
ment for August, that it does not
expect much recovery this year, consultants Staniland Hall
and odds: “There seems every Henley Centre for Fore-
chance that the recession could cas tixig both predict a growth of
well turn into depression.' output of about 1 per cent for
However, it says that, even ^ year> and a recovery of
if the Government wanted to a | KWrt 2 $ per cent next year,
give a direct stimulus to the Henley Centre, in its
economy by tax reduction, its latest Framework Forecast, out
hands care tied to some extent t0 ^ ay> say6; “There are still
because of the recent high level few indicate any signi-
of imports. . . „ ,
“ Any attempt at a direct fiscal
ficant recovery." It says that,
in spite of an increase in in-
stimulus is likely to result in a vest3 £ ent and other components
sharp rise in import penetra- - economic demand, the extra
tion and massive deterioration <rtTnnlnK been largely dis-
of the balance of sipated by higher imports,
to the recent loss of productiv **. -on.-™*,-* less pessimistic
capacity” Capel says.
An alternative way to try to
A somewhat less pessimistic
view is taken by brokers Latog
and Crmcfcshajik. which con-
promote recovery the finn sag- ^ tat
gests. would be for the Govern- output-
meat to engineer a jnodest de- abmrt ^ perr cent tirfs year
valuation of sterling by con- ^ 2 ngr cent next year,
turning its recent policy of cut- ana z Per cent um*iy
turning its recent 1
ting interest rates.
Although the Confederation
However, after a analysis of of British Industry’s
Defence
costs more
. than health
service
By Alan Forrest
A DESTROYER costs almost
three times as much as &
motorway, a modern mum-
sweeper half as much again
as a hospital, and a helicopter
twice as much as a school,
according to a report pub-
lished this weekend.
The defence budget for
1982-83 was
pared to the £IL663bn cost of
the National Health Service,
but rnnrft of the difference is
up of expenditure ou
new weapon research. Labour
Research, the independent
trade union research organisa-
tion, elajms.
The report compares the
estimated £L833bu expendi-
ture on defence research and
development to the Medical
Research Connell budget of
£107m, and points out that the
whole British Raff electrifica-
tion programme, at £825m, is
to cost £75m less than the
development programme for
the advanced Harrier jump-
JeL
Defence costs every house-
bold in the UK £13.53, the
report adds. .
De Lorean receivers
to await consortium
BY JOHN GRIFFITHS
THE SLOW progress towards a Despite reeeirt remarks by Hr
rescue .of the De Lorean car Be Lorean in the JJS that,
manufacturing interprise in .under tixe tenns of the letter of.
Belfast will be revie««d intent the flonsortiian ran*-
Belfast will be re X ie %fr,r,^' intent the flonsortten most
New York today by the Belfast staaA4m0r ^ rece-hrets appear.
pany which sells the cars in
the U.S.
The Receivers, Sir Kenneth
Cork and Mr Paul Shewell, are
tine on the British rescue. This,
is particularly so in view of the
string of rescue packages winch
Mr De Lorean c&Uned to be
expected to tell Mr De Lorean imminent from the moment the
that a gtlll- iiimam ed UK con- receivers moved In during Feb
sortium remains in the running ruaiy, and which came to
to take over in Belfast and that nothing.
Mr De Lorean’s own proposed Mr De L&rean has little option
$35m (£20Jm) rescue must ^ co ^ ) p eT 3te. His sales
continue to take a back seat. Qp^ation cannot survive whh-
Just less than two months out a 8U pply «rf care from Bel-
ago, the Receivers and Bfr ue ffi St He cannot move maxmfao
Lorean signed a letter of intent ^ ^ caxs elsewhere. This
under which he would be free ^ ^ just because of the cost of
to mount his own rescue, u tne sefljQg up a new plant from
consortium were unable to ao A1 Chough the rights to
so. It envisaged that the UK ^ car ^ held by a private
group would complete negona- ^ investment partnership, the
fi rms by Jnly 31.
UK Government bas the right to
That the consortium did not transfer | 0 an operation
do so it is understood to be the ^ ^ n<Hn3nat i OT .
Mr De Lorean cmdd, ct
US. companies, involving such course, shut down hisU.S. roles
matters as royalty arrangements operation in prote st. - That
S7 ri “te US £v«torsand would almost certeinly mean
iteer P ?5Sen^ ro<± as for finis for Belfast K could also
outer payuieui*. affcsct Mr De Lorean’s reputation.
technical assistance.
Botswana
RST Limited
incorporated mBotswana
INTERIM REPORT FOR THE SEE MONTHS ENDED JUNE 30, 1982.
FOR THE COMPANY AND ITS SUBSIDIARIES
Half-year ended
PRODUCTION AND SALES (Tonnes) June 30
Production at Mine 1982
Nickel/Copper matte 1 23,017 23,867
Metal Contained
Nickel 9.043 9,302
Copper 9,229 9,178
Cobalt 127 126
Sales
Matte 23,536 24,791
• Half-year ended
June 30
1982 1981
* (unaudited) :
CONSOLIDATED INCOME STATEMENT POOO’s POOO's
Sales
Matte 3050 45.037
Year ended
December 31
1982
1981
1981
23,017
23,867
46,565
9.043
'9,302
18.278
9^29
9,179..
17,819
127
126
254
23,536
24,791
45,769
Year ended
December 31
1981
(audited)
POOO’s
Operating profit
Less:
Interest and other charges for borrowed
money
Loss on currency exchange fluctuations
Net loss attributable to the shareholders of
Botswana RST Limited
Accumulated deficit at beginning of the year
Accumulated deficit
Net loss attributable to the shareholders of
Botswana RST Limited converted into: —
Sterling at the rate of Pl=
£000’s
U.S. Dollars at the rate of Pl =
CAPITAL EXPENDITURE AND
COMMITMENTS
72,895
143,849
216,744
£0.5184
37,789
$0.9045
65.934
112,099
£0.6006
1JU>30
S1J.B85
36,051
Half-year ended
June 30
Capital expenditure
Capital commitments
Capital expenditure approved
Directors but not committed
143,849
£0.5907
36,979
31.1290
70,678
Year ended
December 31
1981
POOO's
11.398
2,194
REVIEW OF OPERATIONS
Plant availability and operations at both Phikwe and 'Selebi continued to be
satisfactory and mine costs were well controlled at 2.6 per cent above the level for the
last six months of 19SL
Matte production was 23,017 tonnes for the six months compared with 23,867 tonnes
for the same period in 1981 and 22,688 tonnes in the half-year to December 31, 1981.
The prices for the metals contained in matte continued to decline and were
significantly less than the prices for the corresponding period of 198L The prolonged
and pervasive world-wide economic recession has adversely affected markets for each
of the three metals contained in the matte produced by BCL Limited (BCL). Between
June 1981 and June 1982, merchant prices fell by 16 per cent for nickel. 24 per cent for
copper and 47 per cent for cobalt The intense competition for sales in this depressed
market has caused producers of each of these metals to sell at less than list prices.
The reduction in revenue per tonne of matte arising from lower metal prices was
partly offset by the depredation of the Pula against the U.S. Dollar during the period.
The average F.OJB. revenue per tonne of matte was P1.629 for the half-year compared
with Pi ,817 for the same period in 1981 and PI, 754 foe the year to December 31, 1981.
Mainly as a result of depressed metal prices the group operating profit was reduced
to P3.6 million from P9.1 million for the corresponding period of 1981. After deduction
of interest and commitment fees due to third parties, interest on shareholders’ loans
and losses on currency exchange fluctuations, there was a loss for the period attributable
to the shareholders of P72.9 million (1981: P30.9 million). The currency exchange loss
of P36-6 million resulted primarily from the devaluation of the Pula against those
currencies In which the majority of the group's loans are denominated.
Exploration work to extend the ore reserves within the Phikwe, Selebi and Selebi
North mining areas continues to be most encouraging with 86 per cent of the holes
drilled intersecting ore grade mineralisation. At Phikwe the majority of holes have been,
directed towards in-fili drilling and based on results so far an addition of 1-4 million
tonnes will be made to ore reserves at the year end. At Selebi North drilling has
continued and the exploration winze has been completed with development commencing
on the 50 and 120 metre levels. Drilling also continues between the Selebi and Selebi
North ore bodies to explore the possibility of connections at depth.
The new No. 3 Shaft at Phikwe was taken over from the shaft sinking contractors
on April 12, 1982 and mining operations have commenced.
During the period under review the principal shareholders Increased their loans to
the group by P2.4 million to finance loan interest and expenses payable by the company
and certain loan interest and loan principal repayments payable by BCL.
The capital expenditure of BCL was financed partly from Emergency Funding
advances and from operations.
The negotiations for the restructuring of BCL and changes to the Matte Purchase
Agreement with Am ax Nickel Inc referred to in the Chairman’s Statement of the year
ended December 31, 1981 were successfully concluded on June 25, 1982. The essential
elements of the restructuring were summarised in a circular to members dated June 25,
1982. The newly created 12 per cent cumulative preference shares referred to in that
circular have been issued and, in terms of the conditions relating thereto, rank ahead of
the previously issued 10 per cent cumulative preference shares. The Board of Directors
is confident that; provided a reasonable level of world metal prices is achieved, BCL should
be able to continue to operate for many years as a result of the restructuring.
A. B. McKERRON
H. A. SAWYER, Jr.
Registered Office:
Administration Block
BCL Mine Site
P.O. Box 3 ■ . Lt&lJ "■ ' — .1
Selebi-Phikwe, Botswana ■ 1 *.
the consequences of a 5 per
cent depreciation of sterling,
Capel says that it does not
believe the higher growth rate
of output (about 4J per cent in
1984 compared to 31 per cent,
with policies) would outweigh
the increased Inflation which
devaluation would cause.
If the Government .were to
quarterly survey of manufac-
turers is stygian, Laing and
Cruickshank points out that
man ufacturing now accounts
for only 28 per cent of total
output, compared in 59 per cent
by the services sector.
The most favourable review
of the economy is by brokers
BUSINESSMAN’S DIARY
UK TRADE FAIRS AND EXHIBITIONS
Venue
Current International
(01-855
August
i Olympia
mn' .neai ITpt 10x41
Hoare Govett, in i*s Portfolio and Beer Festival (01-778 1256) Met ETOei.h
Strategy for August It believes £ng- w-15 show (01-285 1200) 5F 3 * 9 0urt
Met Exbn.Hall, Brighton
C m^' 1 SSS2tta^ 8 tacrMSB policy in. me Wf Sgjt 5J2 Famborough
expected to industrial pnodac- 1 W (01467 7728) NEC. Bli
tivity, would help the economy As fw C(MVt 7mU) imernational Carpet Fair (021-705 6707) Harrogat
to recover. However, a 5 per I2 N£ir TntSStioiS Woodworking Industries Exhibition
I*
nun-
handling of economic matters
since the spring of 1981."
Sept 19-21 ’"v:.v: National Bakers' 'Buying Fafr J014J6 2411)
H - Harrogate
•Exhi bition
NEC, Birmingham
r 63213) ... Earls Court
H339) Wembley Conference Centre
believes. • handling of economic matters ^ *".’*'.”** National Bakers’ Buying Fair (01-446 2411) ......... Barbican
An even gloomier view is since the spring of 1981. sept 21-23 Harrogate Fashion Fair (01-637 2400) Harrogate
Sent 21-23 I Environmental Health Exhibition and Congress
: ° F (01-637 2400) Scarborough
Sent 26-28 British Footwear Fair (01-739 2071) ^ Olympia.
S** ii i a* a Sept 26-29 Fashion Shoes Exhibition (0462 503J8) Kensington Close Hotel
Council heating system ■**»• iwucm^m.
, . , . , . - . - SePt ^ 1 -• NEaBimLtfm
mHUPTlPrl fo burn rubbisn septiuui ... London Business Show (01-647 1001) Barbican
aesigneti u> ouru luuurou 0VERgEAS TRADE FAIRS AND EXHIBITIONS
LONDON’S Westminster Cout^ Wesfrninster at a negotiated UTiUiOlHlO
iSl‘ has "introduced a beating price per therm. A renewed Aug U-15 ......... International Trade Fair for . H otels, Restenrauto.
system for its council tiomesr in 'agreement with Thames Water -.. Catering and Food— HOTELRES (01^1 7688), Bangkok
Kmfico which is designed to Authority will allow the heat to Aug. 18-21 ExhflHtlcm Hnrxr Khn?
Hum hntH m>al and a mixture of be piped under the Thames to COMBEX (0483 380S5) ............ v .» «.ong iumg
coa? and processed rubbish. Westminster's pump house on Aug. 19-21 ...
C °The old system used waste Churchill Gardens Singapore
heat from the nearby Battersea where it will be distributed to 0790 international Men's Wear and International Jeans
power Station, but tiie Central 3^00 flats and other buildings Aug. 27-29 I™!.!.!.. I” Cologne
Electricity Generating Board is in PunUco. w , Aug 28-Sept 1 ... International Autumn Fa ir (01-734 0543 Frankfurt
to close this next year. . Councillor David Weeks, Aug. USl Fashion Samples Fair— INTERCHIC (01-749 8061) Berlin
Council heating system
designed to burn rubbish
LONDON’S Westminster Con* Westminster at a negotiated
j£T has "introduced a beating price per therm. A renewed
system for its connril tiomesr in 'agreement with Thames Water
Pimlico which is designed to
burn both coal and a mixture of
coal and processed rubbish.
The old system used waste
Authority will allow the heat to
be piped under the Thames to
Westminster's pump house on
Churchill Gardens Estate, from
heat from the nearby Battersea where it will be distributed to
power Station, but the Central 3^00 flats and other buildings
Electricity Generating Board is in Pimlico.
to close this next year. .
The new plant, adjacent to
the power station on land
leased from British Rail, has
Councillor
Weeks,
been built by Associated Heat but we will switch to a mixture
Services, which provided the of coal and processed refuse as
capital outlay. The charges to soon as it becomes economical
Westminster are based on an to do so."
annual standing charge to cover The system has been designed
operation labour, management, so that it can be adapted to
Westminster's housing comm it- Au £ go^epts"" Indro-Perfumery Exhibition (01-486 1951) Utrecht
tee chairman, said, “ The new Se ^ ^ Women’s Ready-to-Wear Clothing Show (Paris
system will initially burn coal, * (X) 26808.40) Paris
but we will switch to a mixture sept g-ll International Shipbuilding, Marine, Small Ships
of coal and processed refuse as . ’’ " and Rshing Exhibition (021-705 6707) Korea
soon as it becomes economical sent 11-16 International Public Works Congress and Equip-
to do so.” ment Show *82 (01-637 2400) — Houston
The system has been designed Sept 14-18 International Electrical Technology Fair—
so that it can be adapted to FlNNTECH (01-486 1951) Helsinki
operation labour, management, so that it can be adapted to r unin ifiuniui-aoo imii '
electricity, rates, maintenance bum all fuels, which will allow Sept 14-19 International Exhibition
and site leasing. the council to take advantage
AHS will manage the plant of any drastic fuel price
and sell the generated beat to changes in the future.
WEEK’S FINANCIAL DIARY
The following is a record of the principal business and
finsTimj) engagements during the week. The board meetings are
mainly for the purpose of considering dividends and official
indications are not always available whether dividends concerned
are interims or finals. The sub-divisions shown below are based
mainly on last year’s timetable.
today QMitarhOBM J»Dh«t Inwl Finance BV
COMPANY MEETINGS— CM FI IB Rate tfotW 19BS SB2.B6
COMPANY MEETINGS — _ ,
Ropner. 140. CoNidlBa Road. Darlington,
12.30 _ .. .....
GM Fits Rate Nc
Cropper (Jamwi 2p
ERF Hldfle OJR
Wiggins Group, RAC Club, 89. Pall Mall. Guinness (Arthur) • Sons 1.575P
S BOARO° MEETINGS —
Final:
Property Security In* Trust
Inurno: . _ _ ,
Broadstone In* Treat
Carrington Vlyella
Horizon Travel
^™oiv?DE NE^^^NTOI eyr PAYMENTS —
Archimedes In*. 7WW IOC.-3.7p
1 Ferguson* Industrial Hkhu 3Jp
Gen Cons in* Trust Z^a
Hadland HtOo» O.sao
Hsmbros £2 <B«P Pd) 37 jS 0
Do. So 3.TSP
□a. A 2. In
HapeaRm Intnl NV Gtd Fits Rat* Nates
JEWlLyne
uotd [f. h7i _1p .
R .° burn l,w ^^Srow
COMPANY MEETINGS— . „ ^
Charter ContolWated. London Ii rtjl Press
Gentry. 76, Shoc Ltna. EC. 12.00
Do. Lns s 7 ». 3 pc
Marsh & McLerm«n,S5cts
Nationwide Bldg Sac 14toK 11/0/02
E7.B9W,
ocean Wilson* _2.2p
SldUw Group 2 Jib
Toroino -Dom LnUi n P Bank Fit* Rato Debs
1M1 THUKD*Y. AUGUST 12
COMPANY MEETINGS— ^
■ell A Slroc. Marine Parade. Dundee,
12JO
Brernar TrusL ^Bmnir House. 27, Sale
Castings. tleMeid Road. Brown hills. West
shop Service Station and Garage Equipment
(01-734 0543) Frankfurt
Sept 14-22 International Autumn Fair (01-486 1951) Zagreb
Scipt 18-21 International Sports Equipment and Leisure Goods
Exhibition— SPOREX— ASIA (01-681 7688) ... Singapore
Sept 21-23 International Exhibition and Conference for the
Pharmaceutic al. Co s metics , Toiletry and Allied
Industries — INTERFHES (021 384 3384) New York'
BUSINESS AND MANAGEMENT CONFERENCES
Aug . 2327 ......... Management Training Consultants: Techniques of
supervisory and management training for
trainers (0533 27062) Leicester
Aug. 25 Oyez/EBC: Deep water pipeline technology (01-242
2481) Norway
Aug. 30-Sept. 1 „ Management Centre Europe: Developing high per-
formance teams (02 219 03 90) Brussels
Aug. 31-Sept 2 _ FT ' Conference: Aerospace enters a new era
(01-621 1355) Grosvenor House, WI
Sept 1 John Ottensooser. Tax planning — New
Opportunities for the Professions (01-499 8281) Savoy Hotel, WC2
Sept 6-8 Frost and Sullivan: Data communications:
advanced concepts and systems (01-486 8377) Mount Royal Hotel, London
Sept 7-10 Industrial Relations Services: Law for personnel
industrial relations and works managers
(01-328 4751) Royal Horseguaxds Hotel, Ldn
Sept 7 Centre- for Extension Studies: Contingency plan-
ning for bomb, arson and kidnapping threats
(0509 263171) Loughborough
Savoy Hotel, WC2
Mount Royal Hotel, London
cKi^stt^eurford Sridflt Hotel. Nr I Sept 9 Oyez/IBC: The art of neg
Chirter Comolldated. London lotol Preu Finis:
Centre, 76, Shoe Uh*. EC 12.00 Smith Bros.
Cohen CA-J. 8. WiterHm Place. St James's. Tmitard Carpets
SW. 12-00 Interims:
Comfort Hotels Intnl. H, Kensington Clarice <T.»
□pricing, 3.00
Howard & Wyndham. Caledonian Hotel.
Princes Street Edinburgh, 10.00
Intasun Leisure, Howard KfeM. Tamale
Place. WC 1l-sa _ ^
Standard Fireworks. Georg* HoOri- St
Georges Sqoare. Huddersfield. T2.00
Svmonds Engineering. Great Eastern
Hotel. Liverpool street. EC, 11. SO
BOARD MEETINGS —
Floats
Smith Bros.
Sept 9 ............... Oyez/IBC: The art of negotiating (01-242 2481) ... Hyatt Carlton Hotel, SWl
Sept 9-14 The Textile Institute: Textile machinery — Investing
for the Future (061-834 8457) Palace Hotel, Lucerne
Sept 18-15 Concrete Society: International symposium on con-
crete roads (01-235 6661) Tara Hotel, W8
Sept 13-14 Frost and Sullivan: Understanding and using CAD /
CAM (01-486 8377) Mount Royal Hotel, Wl
Sept 13-15 FT Conference: World Financial Futures (01-621
1355) London Press Centre EG4
Angorus unshfnff to attend any of the above events is advised to telephone the organisers to
ensure that there has been no change in the details published;
High Stmt. W. 10JO .... _ ,
£*aiu of L*eds. Omcm HdW. City Sq.
Leads. 12.00
Fjemlno (Robert], 8. Crab* Square. EC.
BOARD MEETINGS—
Finale
Aeronautical & Generel Instrument!
Coooer lads
Crouch Group
Group Inve rt ors
ML Holdings
M*Hs:
Adams & GJbbcHi .
Commercial Unron Asaiirinc*
Fiemlno MercantM in* Trust
Kennetrr Brookes _
Ocean Transport a Trading
SmfCtl & NtPlMW A mocuuJ
Trtdofrtrol
York Mount
Ultramar
DIVIDEND & INTEREST PAYMENTS—
Associated Fisheries 0-2Sn
Bell A Sima 2-5P
■rent Walker IJa
Brawn A Tawse S.«p
Charter Coos 7,Z9o
Do. (Bri 7JSP _
Churchbury Ests 8.SP
Law Land t.SSp
Morgan (J. P.) Intnl Finance NV Gld Fltg
Rate sub -Notes 1997 S 373.75
Pctbow Hidga ip.
Redfearn National G>a» Sp
FRIDAY. AUGUST 13
COMPANY MEETINGS— _
Dolyn Packaging. Caerphilly. mld-GIam.
12-00 . ..
Financial Times Conferences
DIVIDEND A INTEREST PAYMENTS— Trlrius. 7. Serjeants inn. EC, XJO
nerkan Express SScts BOARD MEETINGS —
American Express 55cts BOARD
Baoserldg* Brick l-2So Interims;
Chloride Prf 3 pc A wmene I
Greater London 12>»c 14B3 GI4PC Alliance Tn
Malaysia CGort pO 7*J»C 78-B2 SAroe Ault wrhor
Merrill Lynch Oxeraeaa Capital NV Gtd AutomMhm
Rtg Rate Notes W 5190-87 DIV1DEN
Private Inv cn for Asia fPlail SA Fits Arbuthnoi Dollar Inc Tst Ptg Pf acta
Rate Notes 1986 U1U2 Ashdown In* Trust 2-1p
Rate Notes 1986 U13J22
Rengu 2d
Stavotey Inds IJo. . „
Svensk Exgbrtl
. 1987 S80.13
Whltecroft SJi
Do. a.lpe pr
Ashdown Inv Trust 2. ip
Barr tA. G.J ^J5p
Brunswick Coro 2ecu
AB Fits Rata Notes Bun»Andarson 0.1
Whlt e c r oft Sjw „
Do. a.ipe prf 2/Mtoc
■WEDNESDAY, AUGUST 11
COMPANY MEETINGS—- , , „
British. Thr Products. Cafe Royal, 68,
^Regent Street 12.00
Brawn & Tawsa. Kmonvay -West. Dundee.
12.00
Chubb S,
awsa. Kmgsway >W«se. Dundee.
Son, Hyde Park Hotel. 66.
Nava CltrstyJ . KnK, Marco! House,
mo.
Final:
Ber m Brothe rs
intwtaE:
Britannic Asaorance
British Alum 1 nl tun
Foreign Colonial Imr That
Genwai Aeodane Fine Uf* Assurance
A M !ndu^. ,,0 M. c cSnnon Financial Times programme of events will feature the following major conferences in London
TrtHu^i? serieants inn. ec. xjo during September and October.
aSstC^^ aerospace enters a new era
SSmS? Angnst 31, September 1 & 2
SHter- wop) ™anoal futures •
Bawls? &7 1 ? 5 P 2 '* September 13, 14 & 15
70 UMT ^USTS— THE WAY AHEAD
gnjjjrjwijGon Soei OJo October 13
ITmoti^th 3 d s ’* p WORLD TELECOMMUNICATIONS
^idon Scott^i FImoco^Cotp o.to 7 ** October 14 & 15
S^tM^trraoll^PrM Ijp EUROPEAN BANKING FORUM
& «. w.) ossa „ October 18 & IS
Irmowl* B*g lfijir topO.SB3ep
man Saturday; August 1* 5 1 ' addition the FT-City Course, the 25th in the -series, wi]l be arranged with the City University
uS« ro cSS , iite ,mRECT ' AYMENT “ September ^-December 2. This is designed to provide a broad ^demandiSg of kll as^S of tb*
DiviDiND “iNTERgfpAVMENTC- opaatmns of the City and the factors that have hare made it a pre-eminent financial and tradhtf
uur Lobe 2icta centre.
Calcdooian.Assoc Clnetnos 7p
gmjjrUo Gan S*tt OJP
Culha? Sum MM Onl 5. Bp
F inance x, Industrial Tst 2a
UvafPOoTcnlhr PoR Echo Sac Pf 1.75pC
Landau Scenith Fliuwco Coro O.Bo
Sc«ttM t |%tTa»ollan Proa T.Sp
□a. Dabs »» (79-64). 3J W (88-93),
Sparrow CG. W.) OJtSn
Srmcwdi Seo h te ff yg O.SBSBp
SATURDAY, AUGUST 14
DIVIDEND A INTEREST PAYMENT—
Zaoata Coro iBcte _
SUNDAY. AUGUST IS
DIVIDEND & INTEREST PAYMENTS—
AbB0«1 Lah* 2Tcta
Alrican & European In* Prf 1,49 52 Op
Anglo American In* Tn Prf 2,9964lp
Borg-wunar Coro 35cu
Chase Manhattan Coro 85ct*
Grow bell
W! DI V1DEN D ' a^INTE ReST PAYME
Anchor I"tnl Fund 6.84*
Anolied Computer Tochnlooo O.Sp
British Tar Product*' i.S7«p
l)v* Chase Manhattan Coro 85ct*
Ufa Anuranea Colgate-Palmolive 3oas
TBrt AaSS ,l “* Ra, i wl ” Kirbow
RKT PAYMENTS— Int Bank Tar Roc * Dev Spc 77-82 2fepc
W* „ _ MAC SecondGfn Tru*t Fund 4,7p
chnlanea O.Sp Sears Ln ihpc
i.ETSp TSB GUT Fund Pt# 3-lGp
AU enquiries should be addressed to:
The Financial Times Limited
Conference Organisation
Minster House, Arthur Street
London EC4R 9 AX
Tel: 01-621 1355
Telex; 27347 FTCONF G
Cables: FINCONF LONDON
i
IBITIONS
i .
XHIB1TK
.... ?
WERE®
*v JW’'
Ain*' '
\
Financial Times Monday August 9 19S2
UK NEWS
LABOUR
Airline
introduces
new class
By Our Aerospace Correspondent
COMPETITION on the
London-Singapore air route
will increase from Sept-
ember 6, when Singapore
Airlines introduces its Busi-
ness Class service on 747
Jumbo Jets.
The Business Class fare
will be £782 single, compared
with the normal Economy
Class rate of £662 (each fare
including one stop-over).
For this money, the execu-
tive will get a seat in the
cabin immediately behind
first-class. with 36 seats
against the normal 52, giving
a space between seats of
about 3$ inches.
Other benefits will include
seat selection at the time of
boohing; special check-in
counters at Heathrow and
Singapore (Changi); special
lounges at the airports (SIA
is building- its own Silver
Kris lounge at Heathrow); a
free baggage allowance in-
creased to 30 kilos; improved
in-flight service; free meals
and bar service with an
increased number of cabin
crew; and other facilities,
including improved hotel
accommodation where
desired.
Among the latter will be
no extra charge for a spouse
staying in the same room in
an hotel, and extended check-
out times at no extra charge.
Air Europe plans
Gibraltar service
QE2 sea
trials
successful
BY MICHAEL T50NNE, AEROSPACE CORRESPONDENT
Am EUROPE, the UK holiday
airline, is making its first bid
for a scheduled air service
between the UK and Gibraltar.
It has applied to the Civil
Aviation Authority for permis-
sion to fly three times a week
from Gatwick. starting on April
1, 1983, with another once-
weekly service each way from
Manchester, The airline is seek-
ing a 10-year licence, and will
use Boeing 737 jets.
Air Europe already Hies
Gatwick-Gibi^altar and Man-
chester-Gibraltar, but with
charter services only, on behalf
of holiday tour operators. It
also carries newspapers and
mail to The Rock.
Mr Errol Cossey, deputy
managing director of Air
Europe, said: “ We have a
special relationship with
Gibraltar, having carried 90.000
sector passengers to The Rock
since we started to serve that
destination in 1979.’*
Air Europe recently an-
nounced a pre-tax profit of
£5 .4m for the year ended
March 31 19S2, on a turnover of
f 22m. It recently ordered two
Boeing 757 jets, for operation
in 1983, in a £40m deal with
British Airways.
This summer the airline ex-
pects to carry I-2m passengers
to 32 European destinations on
INSURANCE
Increased losses
in non-life sector
BY ERIC SHORT
THE NON - LIFE insurance
sector in Britain is in the
middle of a depression. Keen
competition in almost all its
areas of global operation for
all classes of business, personal
as well as industrial and com-
mercial, has resulted in wide-
spread rale - cutting and
increased underwriting losses.
A clearer picture of the situa-
tion should emerge as the UK
composites report on their
half-year results, starting with
Commercial Union Assurance
tomorrow.
The operations _of ..an insur-
ance company can be divided
into three sections. First, there
is the profit or loss on its
insurance operations— the dif-
ference between premiums
received and claims and
expenses paid out... Next comes
the interest and dividends
earned by investing the cash
flow received and the reserves
held by the company. Last,
there is the capital apprecia-
tion on the investments held.
Interest rates being high
throughout . the world, ; many
insurers have been prepared
to cut premium rates in order
to maintain cash flow for invest-
ments. thereby incurring under-
writing losses which they hope
to offset by the growth in
investment income. More con-
cern is placed on the overall
return on caoital employed.
These conditions influence
insurers in their operations in
the various insurance markets.
The U.S. accounts for almost
half of insurance business, so
analysts have to pay particular
attention to it in assessing the
prospects of UK composites.
Stockbrokers James Capel have
produced a comprehensive sur-
vey of the North American
market, which points out that
the insurance trade cycle in the
U.S. is by no means homo-
geneous-different classes of
business show different patterns.
But overall results are heavily
influenced by the automobile
business, ■which accounts for
more than one third of U.S.
premiums.
James Capel consider the out-
look for automobile business to
be improving slightly, operat-
ing ratios coming to a peak this
year after rate increases and a
lower number of claims. The
survey is pessimistic about
other lines of business — home-
owners, . commercial, multiple
and general liability — though it
points out that workers’ com-
pensation business has remained
remarkably resilient in a hostile
context. It concludes with a
forecast that the bottom of the
U.S. underwriting cycle should
be reached next year and that
should be a modest recovery in
1984.
Royal Insurance and Com-
mercial Union have both been
expanding their U.S. business,
in the past couple of years, away
from their stronghold tradi-
tional in the north-east. They
should show strong premium
growth, with a corresponding
effect on investment income.
General Accident appears to be
lagging in U.S. growth.
The UK used to be regarded
as a sound and profitable insur-
ance market, but not any more.
Those conditions attracted over-
seas insurers who have com-
peted keenly for commercial
business. As a consequence,
commercial rates have been
drastically cut and the estab-
lished UK companies have
turned to the hitherto neglected
domestic market for growth.
The UK sector has seen keen
competition for domestic
business, especially in private
motor insurance.
Stockbrokers Wood Mac-
kenzie forecast that premium
growth in the UK will lag.
behind inflation this year and
next, and they expect the
general trend in profitability to
deteriorate. But the deteriora-
tion will . be hidden in the
effects of the severe winter
weather early this year, which
cost UK insurance companies
more than £250m in adverse
weather claims and entailed
poor figures for the first
quarter. The results for the
rest of 1982 will indicate a
recovery, simply because of
better weather, and will mask
the underlying deterioration.
All analysts agree that,
despite the gloom, shareholders
can look forward to higher
dividends in 1982. Stockbrokers
Rowe and Pitman forecast a
rise of 11 per cent on average
in interim payments and of
about 12 per cent for the
whole year. That view is
based on the underlying
strength of the assets held by
the composites. The next few
weeks should be interesting for
shareholders in the insurance
industry.
Petrol ‘profiteering’ claim
AN MP has attacked the deci-
sion by Shell to raise petrol
prices. Mr Walter Johnson (Lab,
Derby S.) called on the Govern-
ment to stop what he called
.“gross, profiteering" by oil
companies-
Shell . announced on ■ Friday
that it would reduce subsidies
to dealers from midnight last
night — a move which will force
up prices at its garages by Sp
a gallon.
Other leading companies are
expected to announce similar
increases early next week, bring-
ing the- average price of four-
star to £1.72 a gallon.
Mr Johnson said: “ This
scandalous imposition on the
mororisi will have the effect of
pushing up the cost of living.
OVERNIGHT TO MILAN
Yourexpress parcels and documents, picked-up hfe
■ this afternoon, will be defr/ered before noon tomorrow
Including dutiable
shipments. Thebasic
rateis:£7d-+
£Z75perldfa,
door-to-door* .
Forihformation: orfreephone
CF!VCOURl€R 01-4077525 373S
behalf of over 50 tour operators.
• British Airways is to spend
£850.000 on improving the
interiors of its ageing fleet of
One-Eleven jet airliners to give
the aircraft more " customer
appeal * and to help the airline
compete on routes out of Heath-
row, Manchester and Birming-
ham.
• Rolls-Royce is developing a
new version of its RB-211 Dash
535 engine, the H4 with
41,500 lbs thrust, which it has
offered to McDonnell Douglas of
lie U.S. for use on a new, longer
range and improved version of
the DC-10 Tri-jet, the MB-EEE.
• Pilatos Britten-Norman, of
Bembridge, Isle of Wight, the
manufacturer of light transport
air craft, has reached agree-
ment with Mr Ron Ha tick,
president of International Avia-
tion Corporation, whereby he
wiH build t#ie Trislander three-
engined commuter aircraft at
his facility at Homestead Air-
port, near Miami
The aircraft will be called
the Tri-Commutair. After
basic manufacture at Home
stead they wifi be flown to IACs
main base at the general avia-
tion airport for completion to
customers’ requirements.
Sales of Rilarus Britten-
Norman's range of aircraft have
now topped 1 , 000 .
THE QE2 returned yesterday
from 24 hours of sea trials in
the English Channel. The
ship had been refitted after
use as a troop-carrier by the
South Atlantic Task Force.
Thousands of holiday-
makers watched the 67.000
ton Cunard liner sail through
the Solent in sew livery of
light grey hull and orange
funneL The ship has always
had a black hull and a black
and white funneL
It took only eight days to
convert the QE2 into a troop-
ship when the vessel was
commandeered to go to the
Falklands but the multi-
miDioa pound refit, paid for
jointly by Cnnard and the
Government, took nine weeks.
The removal of helicopter
pads involved much struc-
tural renovation.
Captain Peter Jackson, the
ship's master, said yesterday
that it passed Its sea trials
with flying colours.
“ Our new colour scheme
has attracted considerable at-
tention. Most people seem to
prefer the funnel black in tra-
ditional Cunard colours,” he
said.
Fifteen miles of carpet
have either been replaced or
cleaned. The grill room has
been enlarged, and a new
health spa, with Jacuzzis has
been installed.
The QE2 is due to sail to
New York on its first post-
Falklands passenger voyage
on Saturday.
BR flexible rostering will not
involve compulsory redundancy
BY PH! Uf BASSETT, LABOUR CORRESPONDENT
BRITISH RAIL has agreed with
its unions that there should be
no compulsory redundancies
through the introduction of
more flexible work rostering for
its 24,000 train-drivers.
This acceptance that the man-
power savings which BR hopes
to secure from flexible rostering
will be achieved by voluntary
redundancy and other methods
is contained m an <agreement
reached last week between all
sides-
The train-drivers’ union re-
cently called an unsuccessful
two-week national strike over
flexible rostering. The measure
of BR’s victory is contained in
this agreement, which will re-
place the railways’ 1919 agree-
ment on the eight-hour day as
the key instrument in working
methods.
The unpublished agreement
lays down a method of operating
the seven-to-nine-bour flexible
shifts, which is broadly similar
to tiie decision on the issue by
the Railway Staffs’ National Tri-
bunal. chaired by Lord Mc-
Carthy. which found in favour of
BR. The tribunal is examining
this year's pay increase.
The draft agreement was sent
to the unions last week. It is
being signed and returned to
BR. There are, however, import-
ant differences between it and
the McCarthy proposals of RSNT
Decision No. 77.
In the safeguards specified
by Lord McCarthy on flexible
rostering he urged that the
majority of the new shifts or
turns should not exceed eight
hours. This has been tightly
defined in the agreement as 51
per cent at any depot.
The agreement further speci-
fies that normally a rostered
week will be subjected to a
maximum of 44 hr over five
days though, with local agree-
meat, 52 hr 30 min over six
days can be worked. Where
turns are longer than S hr
30 min the figures will be 45 hr
and 54 hr respectively.
The agreement sets up two new
joint working parties. One will
review the progressive reduc-
tion of unsocial-hours working.
The other will examine prob-
lems of drivers’ travel to work,
an important point in the
drivers’ union case.
Ail restored overtime is now
precluded under the terms of
the agreement though BR has
gone some way towards meet-
ing drivers’ fears about ex-
changing shifts between them-
selves by stating “management
will endeavour to assist men
who have difficulty in arranging
mutual exchanges.”
BR is hoping to lose 850 posts
from flexible rostering in the
first year, so the redundancy
arrangements are crucial. The
agreement, however, states:
“ Any footplate staff surplus to
requirements at a depot as a
result of the introduction of the
arrangements set out in this
agreement will be allowed to
remain at their depot until
absorbed into permanent posts,”
either by promotion or trans-
ferring to another depot.
Drivers aged more than 55
will be allowed to volunteer for
redundancy but the agreement
states " there will be no com-
pulsory dismissals as a result
of the application of this agree-
ment."
Merseyside
dockers’
pay talks
The agreement secures for
BR an important revision of
the October 2965 Diesel and
Electric Manning Agreement
to allow the single-manning of
rosters up to and including
nine hours long.
BR has agreed to review at
an early date any savings from
this. Another meeting will
review savings resulting from
flexible rostering, with the
definite commitment of being
charged ’’to negotiate specific
rewards."
Unlike flexible rostering for
guards though the 39-hour-
though the 39-h<
week, a quid pro quo of flexible
rostering, will not be introduced
across the board now the agree-
ment is concluded. It will be
introduced depot by depot only
as new rosters are introduced.
A WEEK of intense negotiations
opens in Liverpool today to
resolve the deadlock between
port management and the
transport union over the
dockers’ annual pay and pro-
ductivity package.
The Port Modernisation Com-
mittee on which the employers
and the Transport and General
Workers’ Union are equally
represented has met intermit-
tently over the last three months
without resolving the claim.
The possibility of an all-out
strike has fanned employers’
fears of further damaging the
loss-making port. The two sides
have agreed to talk throughout
the week to end the stalemate
The chairman of the Port
Employers’ Association, Mr
James Fitzpatrick, is managing
director and chief executive of
the Mersey Docks and Harbour
Company, which lost £7.5m last
year.
He says he is determined, that
by the weekend the port will
have an agreement that will
“ensure stability and a strong
future both for the men and
the Mersey.”
Chairman of the Mersey
Docks shop stewards, Mr Denis
Kelly, said yesterday: “I am
confident we can reach agree-
ment although a lot of hard
bargaining remains to be done."
The outcome of the negotia-
tions will be reported to a mass
meeting of the dockers in
Liverpool boxing stadium a
week on Wednesday.
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BUILDING AND CIVIL ENGINEERING
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Bard;
Civil engineers’
hopes are dashed
GLC studies housing Association aid
UK CONTRACTS
Rank
Rea ntfr
Reed
Stands
Tumei
Wagor
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THE OUTLOOK for the civil
engineering industry has de-
teriorated since the Spring, des-
pite earlier sgns that the bot-
tom of the recession might have
been reached.
The Federation of Civil En-
gineering Contractors says in its
July survey that workloads and
order books have continued to
decline since its last survey in
April.
“ The decline in the civil en-
gineering industry has once
more begun to quicken, after a
period wfaem the indications
were for a stabilisation in work-
load, albeit at a dismally low
ljtvei," the Federation com-
ments.
The survey shows that 47 per
cent of contractors reported
lower order books in July than
six months earlier while 52 per
cent said that order books had
fallen compared with 12 months
ago. Only between 20 and 25
per cent of respondents said
that orders had improved.
In April. 44 per cent of com-
panies had reported a drop, in
orders over the previous six
months and 47 per cent said
that orders had fallen over the
12 months period. At that time,
civil engineering companies
were talking about possibility
of the bottom of the recession
having byen reached.
The federation says that
larger companies appear to have
been worst affected by the
deterioration that has taken
place since' April. A higher
proportion of larger companies
- report reduced order books and
‘‘show substantial shedding of
both staff and operatives, with
staff reductions particularly
prominent”
A rise in invitations to com-
panies to tender for new work
has not been reflected in in-
creased workloads, says the sur-
' vey, which implies that more
companies are being asked to
tender for. the same job while
the average value of contracts
has fallen.
The Federation comments:
** In overall terms, the picture
presented would indicate a
growth in small, short term con-
. tracts which are more labour
intensive, such as repair and
maintenance. Tendering con-
tinues to be very competitive.
This is reflected in the relative
performance of firms, with
small companies stabilising to a
degree, while larger companies
are facing a renewed decline.
“ In brief, the civil engineer-
ing industry is no longer on a
plateau and the subdued opti-
mism beginning to appear ear-
lier in the year has evaporated.
It is dear that unless positive
steps are taken to invest in
capital infrastructure then the
industry will continue to de-
cline and its unemployment rate ■
will rise above its present level
of 25 per cent,” the Feder&Ton
concludes.
ANDREW TAYLOR
‘Keep some existing
regs’— surveyors
THE CURRENT system of
building regulations should be
retained for some types of
building work, according to the
. Royal Institution of Chartered
Surveyors.
The RICS is urging the
Department of the Environment
not to completely abandon the
present regulations when pro-
posals for a more flexible
system are finally introduced.
The Government's plans 'for
introducing a new system of
monitoring and administering
building control regulations,
using private certifiers, were
contained in a consultative
paper published nearly two
weeks ago.
Commenting on the consulta-
tion paper, the Institution says
that, despite the clear need for
simplification and change,
many builders would prefer
“the concrete guidance and
uniformity** of the present
regulations system when
involved with low-rise, conven-
tional buildings.
Mr Peter Pitt, chairman of
the Institution's working party
on building regulation and con-
trol. said last week that the
new proposals have been com-
posed to salt building designers
rather Qian builders and those
who had to operate the con-
trols.
Mr Pitt claimed it was an
illusion, to pretend that any real
change in the system would
occur until a full library of
approved documents illustrating
the new regulations had been
compiled under the aegis of a
properly constituted Building
Control Board.
Until then, he emphasised, the
present regulations — amended
and improved— should be osed.
MICHAEL CASSELL
THE TANGLED affairs of the
Strongbridge Housing Associa-
tion, whose management com-
mittee includes 'three members
of the Greater London Council's
Conservative front bench, are
at the centre of the GLC inquiry
now being held lnlo the financial
aid provided to housoing asso-
ciations by the council over the
past 20 years.
The inquiry, which began last
week, is bring conducted by an
independent QC-
The Association, more than
£750,000 behind with loan re-
payments to the GLC and to
Hillingdon Council, has also
been the subject of an inquiry
by the Housing Corporation, the
body charged with financing and
overseeing housing associations
— the voluntary non-profit
bodies which provide accommo-
dation at “fair rents.”
Strongbridge claims that its
difficulties are due to the failure
by the Department of the En-
vironment to pay revenue
deficit grants to which the
Association is entitled, a not
uncommon source of financial
embarrassment to the associa-
tions, as the grants are discre-
tionary.
But controversey has also
centred on the role of Mr
Geoffrey Seaton, Conservative
GLC member for Surbiton, and
Opposition Chief Whip on the
GLC until the end of last
month. In addition to receiving
a salary as acting secretary and
chief executive of Strongbridge,
he was also director and part
owner, with other members of
his family, of Geoffrey Seaton
Management Services Ltd,
which had the contract for rent
collection and other estate
■ management duties for the asso-
ciation.
Such links are now illegal,
under legislation passed in 1980.
Contracts already in force, such
as that with Mr Seaton, are, how-
ever. exempted, and there is
no suggestion of any illegality
in Mr Seaton’s position. But
it is Housing Corporation policy
for such contracts to be phased
out, and the arrangement is part
of the brief of the Corporation
inquiry which was completed
last week.' Interested parties
were informed of the conclu-
sions on Friday.
Mr Seaton himself stressed
in a statement that he has
“scrupulously avoided using
any improper influence to ob-
tain benefit for the housing
association*' and always made
his own financial interest clear.
nothing new in the housing asso-
ciation movement
For many in the Labour party
an additional motive, apart
from the understandable pursuit
of rumours involving the oppo-
sition, is a deep-rooted sus-
picion of housing associations.
At the same time, however,
some Labour members, such as
Mrs Gladys Dimson, a past hous-
ing chairman with long-standing
personal involvement in the
housing association movement
have expressed the hope that the
inquiry will not lead to a gen-
Tbe Strongbridge Report
Arrears totalled £853,000 but after allowing for likely subsidy
payments from the DOE, deficits remain totalling £184,000. The
Associations can only meet these by selling assets.
Main causes of the arrears were failure “ over a protracted
period** to seek subsidy at the earliest possible opportunity and
the fact that management expenses were more than £80,000 in
excess of DOE norms.
The estates were not well maintained. There was misman-
agement, but no evidence of misconduct or illegality. It recom-
mended that another association should take over; that nine
Boosing . Corporation nominees should join the Boards to give
the Corporation a clear majority; and that the contracts with
Mr Seaton and his two companies should be ended as soon as
possible, without compensation. Mr Harold Mote has offered
to resign from the chair of both Associations.
In addition to Mr Seaton, the
association's management board
includes as chairman Mr Harold
Mote, GLC member for Harrow
East and GLC opposition spokes-
man on transport, Sir Nigel
Fisher, Conservative HP for
Surbiton, and Mr David Howe,
who works in the Prime Minis-
ter's political office. The parti-
san enthusiasm of Labour mem-
bers in pursuing the case is
therefore understandable— even
if, for good measure, the board
also includes the leader of the
Labour opposition on Kent
County Council. Nonetheless,
whatever the joys of the chase,
eral attack, on the housing asso-
ciation movement.
Whatever the inquiry may un-
cover, it should help to focus
attention on the dilemma fac-
ing associations as bodies which
exist to mobilise voluntary and
unpaid effort, and which are
often caught in the shifting com-
plexities of a subsidiary system
which can leave many partici-
pants out of their depth.
Housing association projects
are initially financed by loans
from the Housing Corporation
or from local authorities. On
completion and after submission
of audited accounts, these are
such agreements and the prob-- partly paid off by a government
ipms arising from them are capital subsidy known as
Ho using Association Grant
(HAG).
The debt left outstanding to
the corporation or to councils
is equal to the amount which
the association can finance from
its projected rent income over
30 years, after allowing for
manag ement costs. . Revenue
deficits which may arise can also
be covered by a separate
Revenue Deficit Grant (RDG),
payable at the discretion of the
Department of the Environ-
ment
Until 1979. the DoE also
allowed RDG to be used to cover
unexpected overruns on the cost
of administration of the develop-
ment itself. These costs often
overrun the permitted scale,
especially in London, where un-
expected delays can arise in the
acquisition and preparation of
sites and properties.
These problems were com-
pounded when, in the case of
Strongbridge. tile DoE informed
it that it had overpaid the asso-
ciation £196,000 in grant. It
therefore withheld RDG against
the alleged overpayment, after
claiming to have received no
reply on repayment of the
excess.
These and other technical
problems arising from the com-
plexities of the subsidy system
can swiftly mount to the point,
as GLC housing chairman Tony
McBrearty has alleged occurred
at Strongbridge, where the
board of the association dis-
cussed whether or not it was
soil solvent.
The GLC inquiry could also
clarify the question of where
the -responsibility lies, as be-
tween management boards of
associations, councils and the
Housing Corporation, So r pre-
venting such situations from
developing. In the opinion of
one national official of the hous-
ing association movement “ Both
parties at County Hall have
given money to housing asso-
ciations without proper checks."
STEPHEN MARKS
What’s new In building:
Hoping to solve a potential
vandalism problem, architects
Waring and Netts chose a
Levan polycarbonate sheet to
protect rooflights In a pedes-
trian precinct at High Street.
Gosforth. Newcastle upon
Tyne.
Supplied by Transplastix,
major fabricator of rooflights,
the material is bronze and
promises strength, excellent
light transmission and
weathering characteristics,
and UV stabilisation. It is
also light in weight.
More on Lexan from
General Electric Engineering
Polymers, BLrchwod Park,
Risley, Warrington. Cheshire
(021 622 6868).
★
Econopnmp Concreting Ser-
vices has taken delivery of the
first lorry mounted sinch .peri-
staltic concrete pomp In the
UK with outputs up to 84
cubic metres an hour says
Ackennann Plant (0636
824350).
The Wlban-Ackpump has no
pistons, cylinders or -valve
systems bnt generates suction
and pressure by the action of
rollers compressing a 5-inch
steel reinforced rubber tube
on the inside diameter of an
evacuated steel drum and, vir-
tually, the only component
subject to wear is the long-
life pumping tube which can
be changed on site, reducing
the risk of downtime and high
maintenance costs, claims
AekermamL
*■
A new flat roof Insulation
system called Isogold,
specially designed for the in-
verted flat roof form of con-
struction, has been introduced
by Xsocrete of London NW7.
This incorporates an ex-
truded polystyrene insulation
with. 100 per cent closed cellu-
lar structure promising a high
mechanical strength - and
water absorption of no more
than 0.58 per cent by volume.
Available in 30, 40, 50, 60.
75 and 80 mm, it incorporates
a rebated edge to avoid cold
bridges, and is suggested for
use in car park roofs, cold
stores, refrigerated ware-
houses. agricultural buildings,
ice skating rinks and swim-
ming pools.
TWO MAJOR orders, worth a
total of £18m, have been woii by
SIX ROBERT McALPINE AND
SONS. Cheltenham and London
are the locations and each pro-
ject will take around two years
to complete.
In Cheltenham. £or Cruden
Developments, McAlpine are to
build the Regent Shopping.
Arcade and car park to a design
by -Dyer Associates which takes
full account of the age and
environment of .the area. Within
the covered mall and other public
areas of the 300 by 63 metres
on-plan structure with its 14 lifts
and two escalators the Victorian
era will be reflected in style.
Lombard Street is where
McAIpiae will soon start to erect
a 36 by 38 metres on-plan office
block for Guinness Peat Property
Services. Rising 25 metres from
ground level above an S metres
deep basement car pork, the
reinforced concrete frame struc-
ture will he externally clad in
granite and curtain walling.
★
OVER £0m worth of new work
has been secured by W. S. TRY
(HOLDINGS) of Uxbridge.
These varied contracts cover
a new restaurant and. sendees
area on a management fee basis
at Heston for Granada Motor-
way Services to a value of
£l.5m.
There Is an office develop-
ment at Yiewsley for Vulcan at
£440,000; alterations to Cargo
Centre at Heathrow Airport for
British Airways (£211,000); and
two term contracts each on a
three year basis at HM Dock-
yard Portsmouth— £800,000 a
year for the PSA, and £1.5m a
year at Heathrow for the
British Airports Authority.
*
TEN CONTRACTS with a total
value of £6.5m just awarded to
JOHN MOWLEM include a £2m
new police headquarters at
Otley Road, Leeds, and a £i.3m
five storey office complex for
the Bradford Insurance Com-
pany at Halifax.
The City of Bradford Metro-
politan Council has awarded
Mowlem In the north a £I.2m
management contract to build a
council cleansing depot at
Harris Street
A film award from Leeds City
Council is for 51 council homes
to be built at Ellerfay Lane,
where 23 semi-detached dwell-
ings will be designated for
sheltered accommodation for
the elderly.
i
The versatfle
buikfins system
LT&StKK GTOCRCTC COMPART U WTC
w. flwfraawsi
... ‘ 1W1 flOJNBh' ■ ’•
■ The Home Offitt. has placed
a- £400.000 job to demolish and
rebuild , a 790 fL length of boun-
dary wall at Wakefield Prison. .
The rest- of-f&e,' work covers
a test hotise : andfarility for
Doncaster Monkbridge at White-
hall Road, Leeds; a new public
road for. British Rail at Cop-
manthorpe, . York; waHs and
floors for an extension for J.
Wharton (Shipping) at Gun-
ness. Scunthorpe; . assembly
centre at Go ole Docks and,
finally, four shops for Guisely
Properties at Prospect Street,
Bridlington. ^
R. MANSELL’S new batch of
around ffinTworth covers seven
different awards with a Hambro
Life £2m deal Just under way
this month. The work is at
Princes House in Jermyn Street.
London SW1, and comprises
major alterations and additions
to offices.
The company is constructing
a new reinforced concrete office
building at Rath bone Place
under a £l.lm award, and other
office contracts are a £489,000
development at BaDards Lane,
Finchley, for the Coop Insur-
ance Society and a £806,000 re-
construction at Ecclestone Place,
London SW1 for the LEB .
Housing work has been won
both for the public and private
sector, including an £840.000
order for the London Borough
of Southwark for refurbishing,
repairs and improvements at the
multi-storied Gasti emead Estate.
*
A £4.5m contract to provide a
North Sea liquid gas store 600 ft
underground has been awarded
to FAERCLOUGH CIVIL
ENGINEERING, tunnelling divi-.
sioxu winch will excavate two
caverns in middle chalk rock at
South Kfllingholme,' South
Humberside. Underground con-
veyor belts and deep mine wind-
ing gear will be installed to hoist
excavated chalk to the surface.
Tbe gas store will allow Cal or
Gas to store 120,000 cu metres of
liquid gas. pumped in direct from
North Sea pipelines.
Site scheme approved
FOLLOWING A recent debate
and vote in the House of Lords,
final approval for the Special
Development Order for a 13.6
acre site on London's South
Bank adjacent to Vauxhall
Bridge means that the develop-
ment will definitely go ahead.
It will be undertaken by
Arunbridge on behalf of clients
and will be carried out in
phases to provide prestige
offices, residential accommoda-
tion. shopping mall, leisure
centre, two pubs and related
amenities.
Edward Erdman — which was
concerned with the acquisition
of the site — is retained as sur-
veyor and sole agent in respect
of all aspects of the develop-
ment.
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TECHNOLOGY
EDITED BY ALAN CANE
Computer controlled system could be a life saver
A breath of fresh air from Britain
Office automation
BY ELAINE WILLIAMS
THE ABILITY to give people
a breath of fresh air has allowed
Sabre Safety, a small British
company to reach a turnover of
£1.5m in eight years, against
fierce international competition.
This year. Sabre Safely, which
makes a wide range of breathing
apparatus for industrial applica-
tions. hopes that this turnover
will double in 1982.
As it operates in a relatively
small market competing against
a few dozen companies around
the world. Sabre realises that it
must exploit new technology in
its products and manufacturing
processes to keep costs down
and to produce more sophisti-
cated products to stimulate
sales.
This is typified by the recent
design of a computer controlled
system to test its breathing
apparatus before it leaves the
factory. As Mike Glynn, Sabre’s
managing director, explained:
"One faulty piece of equip-
ment could mean someone's
life."
Until now testing of each unit
was laboriously carried out by
hand and some statistics about
the performance of a breathing
unit under different conditions
was difficult 10 simulate.
Now the company can carry
out complex tests on its products
in a few minutes instead of
hours. Mr Colin King, the
engineering director, believes
that better knowledge about the
characteristics of the breathing
apparatus during use will lead
to better but cheaper designs.
Also several of the company's
major customers have expressed
interest in purchasing the test
machine to help them maintain
existing equipment Sabre hopes
to start production of the
machine next month.
Until now, organisations had
very little choice of testing
equipment — most were expen-
sive and relatively crude.
Sabre's range of equipment
varies from simple masks con-
nected to an eight minute
supply of air Installed at
strategic points around ships or
in chemical factories. These can
be used in cases of fire or leak
of toxic gases to help people
escape from a dangerous area.
Recently, Sabre completed a
rush order of 11,000 of these
units for the Royal Navy, worth
more than £lm. The order, Breakthrough
Jad of
particularly the Far East, tive breathing apparatus market
especially as the UK market is there are opportunities to
static. About 49 per cent of its exploit ' microelectronics. It
rector completed a study,
funded by the Department
Overall picture is
still optimistic
Glynn' hopes this percentage
will grow over the next few
years.
Its long list of customers
include Pemex, the Mexican
state-owned oil company which
has £60,000 worth of Sabre’s
breathing equipment on its oil
platforms in the Gulf of Mexico.
which wag completed ahead
schedule came two days after
HMS Sheffield was hit during
the Fal klands crisis.
At tbe other end of the range,
Sabre makes sophisticated
breathing apparatus for use in
fire-fighting and for mines
rescue where up to four hours’
worth of air has to be provided.
Sabre is putting great
emphasis on export markets,
In Saudi Arabia it secured
£250,000 worth of orders from
that country’s civil defence
organisation. This was an
important breakthrough in a
market dominated by US. sup-
pliers. Other customers include
chemicals plants and min ing
companies.
The company realises that
even in the relatively conserva-
of Industry’s Microprocessor
Application’s Programme Con-
sultancy MAPCON = scheme, to
indicate how such equipment
could be improved.
For example, the company is
considering replacing the con-
ventional air pressure gauge on
more sophisticated breathing
equipment with a microproces-
sor-controlled one.
Though slightly more expen-
sive than conventional systems,
it could give the user far more
information, such as monitoring
the level of toxic gases in the
air, measuring temperature,
warning of leaks, and monitor-
ing pressure in the face mask
Itself rather than the pressure
delivered from the valve unit.
Machine tools
New features in Addison horizontal bandsaw
BY MAX COMMANDER
THE Addison Jubilee AH250
automatic horizontal bandsaw
pictured below is as addition
to the range of tools from this
company at Westfields Road.
Acton, London, W3 (01-993
1661).
Powered rollers in the
machine vice drive the work-
piece to a length stop mounted
on two support rods. A limit
switch is incorporated to initiate
the cutting cycle. The cycle
repeats automatically either
until the material is exhausted
or the required number of
pieces, pre-set on the work
counter, have been produced.
Other features include a
system whereby the feed rolls
automatically withdraw the bar
stock at the completion of each
cut to prevent the blade rub-
bing against it as the sawbow
rises.
The load- on the bandsaw
blade can be monitored con-
stantly and the feed rate auto-
matically adjusted; a combina-
tion of carbide pads and roller
bearings provide precise control
of the bandsaw blade.
The machine includes a
BY GEOFFREY CHARLISH
NOT LONG ago, Bosys, the difficulties
office automation consultancy
and research organisation pre-
viously known as Urwick Nexos,
conducted a survey among 290
managers with a primary
responsibility for office auto-
mation.
Sixty per cent of them
responded and the conclusion
by Eosys is that the overall
picture is still bright despite
the economic climate. However,
on some scores the outlook is
rather less bullish than it was
when tbe last survey was con-
ducted six months ago.
For example, 57 per cent of
the respondents have increased
budgets for the next 12 months
whereas the figure was 67 per
cent six months ago.
There also seem to be grow-
ing problems of compatibility
of systems. Some 59 per cent
mentioned such difficulties com-
pared with 52 per cent during
the earlier survey.
An attempt was also made to
find out what cost benefit the
respondents expected to obtain.
Although most managers had
little problem in identifying
applications, they had some
difficulty in finding suitable
systems and often thought the
Something for
nothing
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■iCOJSFEDE oc to**us* tens e/^-sy
•thaneofWil/ofw* process coni roitf? vices
ISMIERSON
EUSNWWE.SWNX3N. SOt OW&Bl
Safety
Beacon
for
night use
GERALD COOPER’S simple
idea to produce a tiny clip-on
light to help people be seen
at night could result in sales of
3m units in the first year of his
company's operation.
Mr Cooper has set up a corn-
most part either go up or pany called Barchbed to market
involved in imple-
mentation were too great The
more complex the user’s
activity, the more often were
these views expressed-
But clearly a good deal of
time goes into preparing justi-
fications for systems. Well over
half of the respondents had
prepared between one and five
such reports, while 6 per cent
had prepared more than 10.
Some money is being spent
looking at the idea of office
automation. Over 91 per cent
had set aside up to £10,000 —
but few managers expended
sums over that level (about 8
per cent).
Expected expenditure on the
systems themselves will for the
grouped control console for the
operator with a workpiece
counter and coolant gun wfth BiOtCCllIlOlOSV
hand nozzle for fl ushin g swarf
from the cutting area.
Capacity is 250mm for rounds,
230mm for squares and for rec-
tangular 280 x 190mm.
remain the same — only a few
per cent of those questioned
expected it to go down.
Microcomputers, word proces-
sors, executive terminals and
microfilm/microfiche are (in
that order of magnitude) the
front runners for money. But
approximately three-quarters of improved upon,
the managers expect no change Barcla}s Bank helped 3Ir
of spending on electronic mail. Cooper with finance for his
viewdata, facsimile, message venture which already has
switching or optical character export markets opening up in
his invention — a small flashing
beacon with a long life which
can be seen up to a distance of
a quarter of a mile.
He designed the light because
he felt that- present fluorescent
belts worn by children, cylists
and horse riders could be
recognition.
Portable extractor for welding fumes
Sweden, Norway and the U.S.
The Fizgig, as the small flash-
ing beacon is called, is being
manufactured by a seperate
company to Barchbed, set up
by Mr Mike Sanderson. He
helped turn Mr Cooper’s idea
into a practical reality.
Mr Cooper hopes ‘that both
companies could employ a total
of 50 people by the end of the
year if present demand is
A BLEAK future has been fore- _ cost US? 100m to bring a new ma intained.
cast for many of the 200 or so * drug onto the market because of
Bleak forecast for the
new drug companies
AN air flow of 21m 5 /mfn at
150 mm wg (750 rfm at 6 in. wg)
vacuum is daimed for the new
DUS portable dust extractor
from Defuma, Stukeley Road
Industrial Estate, Huntingdon,
Cambs (0480 55466).
Designed mainly for the ex-
traction of welding fames and
oil mist, the DU5 has a filtration
area of 9,000cm? and a 44,000 cc
capacity collector tray. Full
technical details from the com-
pany.
Keeping computer storage confidential
HOW does a company tell if tile
confidential information stored
away in its computer files are
safe from prying eyes?
The National Computer
Centre and Deloitte, Haskins ing the operation of huge data
and Sells recently carried out a computers,
study involving several large The NCC found that external
computer users to test if an ex- . auditors could take on the extra
ternal auditor could check effec- task of data protection inspec-
ts vely on a company’s computer tious provided, they had know-
security. ledge of computer based audit- are available from NCC, Oxford
The reason for the interest in ing systems. Today such know- Road, Manchester, Ml TED.
this subject is due to proposed ledge is relatively common,
legislation for private data net- Six organisations including
works. So far the government Trustee Savings Bank North
has been very vague about the West United Biscuits and Liver-
possible procedures for inspect- pool University participated in
the survey. Information stored
on the computer systems were
varied, ranging from student
records, payrolls, to bank
account details.
Copies' of the NCC’s findings
companies which have sprung
up to exploit the potential of
biotechnology In the production
of new drugs.
In a report on the impact of
biotechnology in the pharma-
ceutical industry published by
Strategic Incorporated, the U.S.
consultancy says that only a
handful of companies will
eventually survive because of
the enormous investment
required before new products
can reach the market
Already there are indications
that the rush to invest in bio-
technology is slowing down as
investors realise that their
investment is unlikely to show
profit for at least five to 10
years.
It has been estimated that it
can take about seven years and
the rigorous testing needed. In C*nn farm no
addition biotechnology com- CULv
still ’
panies still have many tech-
nology problems to solve in
moving developments from the
laboratory to full scale produc-
tion.
The first product which will
reach the market is fihely to be
a human insulin. Two manufac-
turers Eli Lilly in lie U.S. and
Novo of Denmark have
announced their intention to
make insulin using the new
technology.
Diabetes is one of the most
repeat
THE LOCAL area network
conference and exhibition held
earlier this year was, according
to the organisers, “ a huge
success ” and so is to be
repeated next year. March 8 to
10 in London and June 27 to 29
in the VS.
The three-day conference will
take place in two parallel
streams, one dealing with key
technical elements and the
l
common killers today. There other highlighting selection and
are more than 6m sufferers in implementation considerations.
alone. High on the list of topics will
The Impact of Biotechnology be a review of the various
on the Pharmaceutical industry standards currently promoted
is available from iH. 134, Hoi* by a. number of manufacturers,
land Park Avenue, London, Wll More from Online - Conferences
4UE - on 09374 2211.
* Off*.. fc N \
Financial Times Monday August 9 1982
FINANCIAL TIMES SURVEY
Monday August 9 , 1982
Panama is slowly trying to fill the power vacuum created by the death
in a plane crash of General Torrijos, the country’s benign dictator
for 13 years. Relations with the U.S remain uneasy but the
stability of Panama, the home of the canal, is vital to Washington
lies ahead
By WILLIAM CHISLETT SiJp chMqui "
EVERY DAY, people visit a simple marble tomb at J \ Code 7
the main cemetery in Panama City. The tomb, / "\BiosiA
which always has fresh wreaths by its side, is J "
watched over by four National Guardsmen who a
stand to attention in the sweltering heat.
On July 31, the first anniversary, of the death of V'sonto*
General Omar Torrijos, Panama’s benign dictator Dori * fl J
for 13 years, thousands of people converged on the 4jS
cemetery and gathered at other places around the § g- *» ^
country for acts of homage sponsored by the ~
Government of President Ricardo de la Espriella
and the National Guard, which General Torrijos
headed. Amulfo Arias. . both labour and capital happy. He was replace
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Dredging operations, an important part of the maintenance of the canal, continue as The Royal
Viking Sky makes a northbound transit
• Code :
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The guards' barracks, across
from the cemetery, prominently
displays a poster carrying one
of Gen Torrijos’s many sayings.
The poster, referring to his
death, reads: “ Pick up the
National Flag, kiss it and cany
on with the work.”
A current best-seller in
Panama is a collection of
many of the general's sayings.
The airport has been renamed
after him and his face stares
out from postage stamps and
numerous posters.
The visitor to Panama, the
home of the canal which acts
as a vital funnel for world
trade and also of the largest
offshore banking centre in the
Americas, cannot but be struck
by the reverence still paid to
Gen Torrijos. The power
vacuum created by his death in
a plane crash is still keenly
felt and that vacuum is
heightening the sense of
unease about the future.
The Pan amanian economy
which revolves around services
like banking and the canal and
exports of sugar, coffee and
bananas is going through a diffi-
cult stage as growth, hard hit
by the international recession
and low commodity prices, con-
tinues to decline. The economy
is expected to grow by a maxi-
mum of 1 per cent this year
after 3.6 per cent in 1981 and
there will probably be no
growth at all next year.
At the same time, the country
is moving towards free elections
in 1984; the first since Gen
Torrijos was brought to power
in the 1968 coup against -the
conservative government of Dr
Amulfo Arias. .
Gen Torrijos’s closest aides
say that had he lived he would
not have run in the elections
for -the official Revolutionary
Democratic Party (PRD). The
party was formed in 1979, along
the lines of Mexico's long-ruling
and broadly-based Institutional
Revolutionary Party (PR1), in
order to legitimise the “ revo-
lutionary process ” started by
Gen Torrijos. The PRD is an
uneasy mixture of Marxists.
Social Democrats, businessmen
and nationalists.
The general, however, wanted
to remain in the background as
the commander of the National
Guard and the power behind
the throne. He had a remarkable
ability, through the force of his
personality, to steer a path of
consensus policies and keep
both labour and capital happy,
something quite out of the ordi-
nary in turbulent Latin
America.
His ambition was to continue
his progressive internationl
foreign policy, which so in-
furiated Washington and be pre-
sident of the Non-Aligned
Movement in 1983. He would
have found a civilian presiden-
tial candidate in his mould for
the PRD.
Gen Torrijos’s death, how-
ever, has laid bare the infight-
ing in the Government which
was kept at bay while he was
the final arbiter, and intensified
the jockeying for power. Sr
Aristides Royo, whom Gen
Torrijos hand-picked in 1978 to
be' President, resigned at the
end of last month after falling
out with the National Guard.
He was replaced by the Vice
President Sr-de k Espriella.
The National. Guard, too, has
had its internal differences
which culminated in March in
the forced retirement of its
head. Colonel Florencio Florez,
in a palace coup. By most
accounts the first President
Royo knew about the change
was when Colonel Rub6n Dario
Paredes, the new guard head
who quickly promoted himself
to general, presented President
Royo with a decree to sign
legalising the changes. Rela-
tions between the executive and
the military have been strained.
Gen Paredes is now trying to
step into Gen Torrijos’s shoes.
He is expected to retire nert
year and to run for the presi-
dency for the PRD.
Meanwhile, centrist opposition
parties like the Christian Demo-
crats are trying to exploit the
power vacuum and the growing
discontent with the Government
by forming a united front
against the PRD. To the Gov-
ernment’s audible sigh of relief,
the opposition, which includes
the Panamenista Party of Dr
Arias, aged 81, is presently as
divided as the Government.
A senior government official
said that if the opposition
settles its personality squabbles
and runs on a united ticket
around the figure of Dr Arias it
could beat the PRD in the elec-
tions. The official feared that
if this happened and General
Paredes was the PRD's can-
didate, the National Guard
might not respect the results for
fear of losing its influence.
“Panama would then go down
the road of El Salvador,” he
said.
This is an extreme point of
view, since Panama and war-
tom El Salvador are like chalk
and cheese. The remark is only
quoted because it does dramatic-
ally reflect the sense of unease
which has arisen since Gen
Torrijos’s death. Some pessi-
mistic observers believe that
elections could be postponed.
The remark also raises the key
issue of the future role of the
National Guard.
If Gen Paredes is presented
as the PRD’s candidate, the
National Guard will identify
itself even more than now with .
the next government Sr Ricardo
Arias Calderon, the country's
Christian Democrat leader,
believes that the guard is play-
ing with the country's destiny
as a democracy if it does not
return to a purely professional
role.
A cosy relationship has
grown up between the guard
and the political bureaucracy
with the guard now regarding
itself as the custodian of tho
legacy of Gen Torrijos. The
upper echelons of the guard
were ail formed under Gen
Torrijos and most are said to
share his progressive views. Th-»
guard appears determined not to
allow the dock to be turned
back.
Washington long viewed Gen
Torrijos as a nuisance in its
backyard who was fanning the
flames of revolution with his
espousal of the cause of the
Nicaraguan Sandinistas. Shortly
after Gen Torrijos’s death. Gen
Vernon Walters, President
Reagan’s diplomatic trouble-
shooter. visited Panama and to Id
the National Guard command
that Washington hoped that
now Gen Torrijos was dead
Panama would stop “messing
around” with revolutionaries.
Gen Walters, said a participant
at the meeting, was politely told
to go to hell.
Panama has not ceased in its
CONTINUED ON
NEXT PAGE
CONTENTS
The economy: hard pressed
to make fiscal ends meet II
Main exports and imports:
key economic statistics II
Ranking: the influx' of
foreign banks roils steadily
on II
The Panama Canal: How
the historic waterway is
struggling to keep pace with
maritime traffic forecasts in
The Colon Free Trade Zone:
a showpiece of the Pana-
manian economy HI
Tourism industry: new
moves to win back over-
seas visitors XU
The political scene: activi-
ties are hotting up rapidly IV
Profile: General Paredes,
new head of the National
Guard IV
Foreign policy: bold plan to
help ease the conflicts of
the Central American re-
gion IV
i# *^%V.%%VoV.V.VoV.V.%V.V.%V.V.VoVoVoV.V.V.%V.V.V.V.Vo*a
Labor, Logistics, Location
AEF ISO!
lit use
Light-asseznbly, labor-intensive manufacturing oper-
ations can't mala tain profitability without these
three key dements. But where does the best possible
combination of these elements exist?
The Republic of Panama is the answer.
In fact, when comparing the total picture for
offshore assembly operations, Panama offers substan-
tial advantages over any area.
Labor: Panama's available labor pool of skilled and
unskilled workers is well-educated, 50% bilingual
and has proven to be extremely productive. Coupled
with these factors are low minimum wages and flexi-
ble labor laws.
rLogistics: Panama offers the most developed
industrial-commercial infrastructure in all of central
Latin America and the' Caribbean, especially for
light-assembly operations,- ample utilities and
hydro-electric power supply; a modem international
telecommunications system; and an advanced trans-
portation system wi cb superb port, rail and air-freigh t
facilities. And P anam a is a major world ba nk i n g cen-
ter with $40 billion in deposits.
' An expanded industrial park in the Colon Free
Zone welcomes offshore industries with priority
space and all the advantages of the second largest free
zonein the world.
Location: One of Panama's premier assets is its key
location between the Americas and the Atlantic and
Pacific, The Panama Canal offers unparalleled advan-
tages to manufacturers. New and expanded air freight
terminal? offer daily
flights to major U.S. lo-
cations, and the coun-
try's major ports on two
oceans provide daily
direct shipping to all world markets and supply areas.
. Incentives; Anorber key element is Panama's
positive tax incentives for light-assembly operations
under the Maquila Program. There are no income
taxes, no import/export taxes; no sales tax and the
U.S. places no quota restrictions on goods assembled
in Panama. In addition to this, a single-contact “one-
stop-shopping" agency assists foreign manufacturers
in establishing operations by giving maximum ser-
vice and flexibility with a minimum of red tape.
Labor, Logistics, Location.
Only a few of the reasons why the Republic of
Panama is the optimum location for your offshore
manufacturing-assembly investment. For more in-
formation about Panama's advantages, send us your
business card or just fill out and mail the coupon
below. Thank vou.
• ••SB
YES! I'm interested in Pfeiunu for:
□ Offshore Assembly Production Sites
□ Commercial/Fmancul Interests
#
m
The Republic of Panama
Maquila International
3300 West Greenridge/306
Houston, Texas 77057
Phone: {713) 781-7383
We Mean Business
wmm m
'* A WT,j.y,. ‘Me*
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RLJk
IfTli BNP
•••* ••• •••• Hv n w N
•••• •• ••••• ™ -
•••• ••• ••••
•••• Mat •••
•••• . •••» '
ataa aaaa ata
lj Group
Banque Nationale de Paris, first bank in
France with 2000 branches, has an
international network of 700 branches
in seventy-seven countries worldwide.
In Panama
Panama City
• Banque Nationale de Paris
P.0. Box 201 Panama 1, R.P., Tel: 64-85-55 Tlx: 3282266
• Transalma
Subsidiary, Storage and Financing
P.O. Box 6-2936, Estafeta el Dorado, Panama, R.P,
• Banco Fiduciario de Panama, S.A.
Subsidiary, Main Office
P.O. Box 1774 Panama 1, R.P., Tel: 64-50-00 Tlx: 3282128
Chitre
• Banco Fiduciario de Panama, S.A.
Paseo Enrique Geenzier, Tel: 96-2240
Colon "Free Zone"
• Banco Fiduciario de Panama, S.A.
Zona Libre de Colon, Tel: 45-0047
David
• Banco Fiduciario de Panama, S.A.
Calle Central, Tel: 7 5-1 552
In Grand Cayman
(Managed from Panama)
• Banque Nationale de Paris
TJx: 32S2125
Other offices of the BNP Group In
Costa Rica, Colombia and Venezuela
Til Banque Nationale de Paris
M Sr § Head Office
1 6 Boulevard des Ita liens PARIS 75009.
Tel : 244-4546 Tlx : 280 605
UK Subsidiary:
Banque Nationale de Paris p.l.c.
8-1 3 King William Street LONDON EC4P 4HS
Tel: 01-626 5678 Tlx: 883412
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Uo> :
3 OWE
»
Financial . Times Monday
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The strong services sector is buoying up an a il ing economy.
Even so, only minimal growth is forecast for this year.
Hard-pressed to make
fiscal ends meet
main exports and imports
Tower Mods in the flnandaf district of
Panama City
EvMirts (furores in ?m>. 1*® J 1 ** 1
Petroleum products
n a
Bananas
- 66 ■- .62 78 .
Shrimps
45 , « «-
Sugar
- 26:. . «• 63
Coffee
“ . 10 - W 7-
Imports
1979 -1980- 1981
Oil
SALS' m* 3469
ISA . Iftttl S
capital goons - ■ ***» ■
Some*: UN Economic Commn.-lof Udn AanWo* (Cepal).-
LOOKING OUT across Panama
City from the skyscrapers
The Government based its
_ modest 1982 budget on receiv-
mf- “ at 0 !*
mg number of international onJy received ?411m. This short-
banks, it appears at first sight f ail coupled with the burden
that Panama’s economy is on the exchequer of meeting
booming.
New luxury apartments and
Commercial offices are' nearing
completion and in the tiny
capital city, such construction
work stands out prominently.
But it is a deceptive view and
in no way mirrors the true
state of the economy which
will continue its relentless
decline this year, for the third
year running.
Beal growth, which peaked at
7 per cent in 1979 is officially
forecast to be no higher than
1 per cent this year after 3.6
per cent in 19S1.
The services and comma di-
ties-based economy, which
revolves around 127 inter-
national banks (using Panama’s
offchore facilities), the canal,
the Colon free trade zone and
exports of sugar and coffee, has
been badly hit by the world-
wide recession.-
But while the economy is
ailing , it is in considerably
better shape than the other five
economies in Central America
because it is more diversified.
Panama’s situation would be
considerably worse were it not
interest payments, has made
budget cuts necessary.
The new President and econo-
mic overlord, Sr de la Espriella,
said the budget was recently
cut by L2 per cent or $150m,
mainly in capital expenditure.
Even so, he said this would
mean that the $255m public
•'If we do, it will open the
flood gates to other wage
demands and would completely
undermine our economic
policy."
The strike was quickly settled
when Sr de la Espriella took
office and apparently to the
teachers’ benefit
The Government's aim is to
hold-off a general wages in-
crease until next year — “ we do
not want to be another Costa
Rica," said Sr de la Espriella,
referring to that neighbouring
country’s state of bankruptcy
Influx of foreign
rolls steadily
on
posed the threat which Panama
feared it might. All offshore
business in Panama is exempt
from fa*, unlike in the U.S.,
and there is monetary security
too since the U.S. dollar is the
ECONOMIC STATISTICS
1979
1980
1981 1982f
GDP real growth rate (%),
7.0
4J9
3-6 zero to 1.0
Inflation (consumer) (%)
14.0
15.3
7.3 6
Current account deficit
$324m
5286m
5421m —
External debt (pnblie)
$2bn
$2.21bn 92.33b n $2^8bn
Debt service (interest, capital)
9500.7m S453.8rn $536.8m
t Estimate.
Source: UN Economic Commission for Latin America (CepaU-
THE BANKING sector is now
the most dynamic part of the
ailing Panamanian economy
and its growth shows no sign
of decreasing.
While agriculture, manufao
turing and construction are all -country’s legal tender, although
in the doldrums international for nationalistic reasons it is
banks continue to set up shop referred to as the balboa in
in Panama City, the biggest book-keeping,
offshore centre in the Ameri- Bankers also take heart from
cas, from where they largely the fact that there have been
recycle Euromarket funds and. no changes in the 1970 banking
some private capital to Latin law. the cornerstone of the
America. sector, and they thus ieel con-
The sector housed in a fident that the status quo is
handful of skyscrapers and a unlikely to be altered very
few converted houses, now much if at all.
sector deficit target set by the
International Monetary Fund
(IMF) for this year, under its
latest SDR $29 m standby credit
with Panama, would still be
exceeded by some 580m.
Sr Guillermo Chapman, the
leading private sector econo-
. . - . . ... mist, said that but for the
for the pivotal position of wv cuts the deficit would
vices in the economy which, SSTbeen $425m.
while affbeted by the inter-
national recession, give the
country a cushion against the
sharp drop in the international
price of its commodity exports.
For example, the banking
sector #rew by 22 per cent last
year, while construction
declined 7 per cent (the new
bousing seen today is the tail
end of the 1978 construction
boom); manufacturing fell by
2.3 per cent and agriculture,
the country’s Achilles heel,
dropped 1.2 per cent
Panama's straitened circum-
stances have been aggravated
by a sharp drop in revenues
caused by lower, than targeted
tax returns and the high cost
of servicing its large external
debt of $2.6bn.
The other ^nam conditions of
the IMF agreement, signed in
April for a year, is no across
the board wage increase this
year for the second year run-
ning and a ceiling on net
foreign borrowings of 9255m,
the same as the budget deficit.
Sr de la Espriella, a techno-
crat widely admired by the
International financial com-
munity for his orthodox
economic policy, is faced with
the delicate issue of trying to
keep the lid on public sector
wages. Teachers are seeking a
$100-a-month increase, but the
Government has only offered
half that amount.
largely caused by gross over-
spending. financed from mas-
sive foreign borrowing.
Panama’s own external debt
represented 62 per cent of gross
domestic product ar the end of
1981. This was down from 68
per cent at the end of 1980 but
it is still very high.
The IMF has asked the Gov-
ernment to bring the debt down
another 2.4 per cent this year.
External debt service payments
last year equalled 12.5 per cent
of total exports of goods and
services, up from 11.9 per cent
in 1980.
Meanwhile, the grandiose pro-
ject to develop one of the
world's biggest reserves of
copper in western Panama —
Cerro Colorado, literally the
“ red mountain " — has been
delayed while another feasi-
bility study is drawn up over
the next 18 months for a more
modest production output of
50,000 tonnes a year.
The low copper prices and the
enormous extra foreign borrow-
" We simply cannot afford to ing which Panama would need
give into the teachers," he said, to see the project become a
reality (with its joint venture
partner Rio Tinto-Zinc, the
British multi-national), have
made both sides take another
look at the multi-billion dollar
M
*****
**.
* **
BANCO SUDAMERIS
INTERNACIONAL, S.A.
SUDAMERIS INTERNATIONAL
BANKING CORPORATION
Capital : USD 15,000,000 Reserves : USD 4,200,000
Via Espana y calle Colombia, Panama, R.P.
Telex : 2637 SUDINT P.G. Phone : 64.9222
COLON Free Zone Branch :
Calle E y Paseo Gorgas, Edificio 41, Colon, RJP.
Telex : 8746 SUDINT ZL P.G. Phone : 45.2033
A fully owned subsidiary of BANQUE SUDAMERIS, PARIS
Full Banking Services available through the SUDAMERIS NETWORK in:
ARGENTINA BRAZIL CHILE COLOMBIA FRANCE PARAGUAY
PERU URUGUAY U.S.A, VENEZUELA
The Shareholders of BANQUE SUDAMERIS are:
BANCA COMMERCIALE ITALIAN A, Milano
BANQUE INDOSUEZ, Paris
DRESDNER BANK A.G., Frankfurt a.M.
PARIBAS INTERNATIONAL, Paris
UNION DE BANQUES SUISSES, Zurich
represents 9.2 per cent of the
Gross Domestic Product, a full
percentage point more than a
year ago, compared to agricul-
ture's declining 13 per cent
* The 127 Panama-based banks,
as against just over 100 two
years ago. employ 8,500 people,
all but 330 of them Pana-
manians.
The presence of so many
banks gives the hard-pressed
Government readily available
credit and underscores the
international confidence in
Panama at a time when con-
fidence in the rest of turbulent
Central America is at its
lowest ebb.
Assets (which in banking
terms means loans) of the
banks totalled $44Jlbn at end-
March compared to $38£bn at
end-March 1981. Bank deposits
totalling $38.Ibn, most of them
borrowed on the international
inter-bank Euromarkets, finan-
ced the great majority of the
loans.
Last year, nine new foreign
banks obtained international
licences to operate from
Panama and, so far this year,
three -have been granted
general licences to carry out
both domestic and offshore
business. Among the new-
comers are Credit Suisse, Bank
Leumi Le-Israel and Mitsubishi
Trust and Banking Corporation.
Japanese banks have boosted
their presence in Panama more
than any other country in the
last three years. Trade is grow-
p reject.
William fTiiclotf in * between Japan and Latin
rr uiiztm v_,uiMeiL America and Tokyo is also keen
in becoming involved in the
idea of building a sea level
canal in Panama to replace the
present waterway.
Some bankers are beginning
to suggest that the place is
becoming saturated with banks.
But as long as money con-
tinues to be recycled Panama’s
position is assured. And thanks
to the Falklands crisis, which,
resulted in -a transfer of an
estimated $2.5bn from the UK
and the UJ5. to Panama by
Argentine, Venezuelan and
Peruvian banks, many bankers
believe that Panama has a
stronger future.
One European banker com
men ted, “The amount is not
so important, since money
flows in and out of here. The
point is that it came here, and
this can only boost confidence. 1
Numbered accounts can be
set up in any currency.
The establishment of inter-
national banking facilities in
the U.S: last December has not
Capital base
However, the National Bank-
ing Commission, which vets all
new applicants and keeps an
eye on the banks’ activities, has
mooted the idea of increasing
the capital base of banks. At
tiie moment, it is $lm for the
majority of banks with a
general licence and $250,000
for banks only concerned with
offshore- business.
Bat the bankers, represented
ha their own association,
oppose the idea on the grounds
that once the 1970 law is
altered it will set a precedent
for other changes and make
banks nervous.
Sr Mario de Diego, the com-
mission’s head, explained that
while the law would probably
not be changed, some banks
had been asked on an Indivi-
dual basis to increase their
capital
Having built up a very solid
reputation, Panama is anxious
to preserve it. The commission,
always tough on who it allows
in, is taking a harder look at
new applicants.
The Commission is also
treading on delicate ground in
its attempt to compel those
banks with a general licence
to put up a $2Qm bond issue
every two years at a meagre
three per cent interest for the
depressed agricultural sector.
The Legislative Assembly has
drawn up a draft law to this
effect- and it only lacks the
.signature of the President
before- coming into effect.
The banks fiercely oppose
the idea of being forced to
invest in the country
The Government, an the
other hand, 'feels that the banks
have long reaped fat profits out
of Panama and that they
should contribute a little to the
nation’s well-being.
“ is it really, in our interests
to have the 'peasants arrive
starving in - Panama City?"
asked a self-defined “ evolu-
tionist " banker. •
According to Sr Mario
Fabrega, vice-president of the
bankers' association in Panama,
a compromise solution has
been reached whereby some
support will' be given to agri-
culture with interest rates in
line with those of the World
Bank.
But as. far as obtaining com-
mercial credit, Panama has no
complaints. With so many finan-
cial institutions at its feet the'
Government has no problem .
raising commercial - loans,
despite the unsettling size of
its external debt which stands at
$2.6bn.
When the Falklands dispute
was raging and banks were
weary of lending to Latin
America, a loan to the Republic
of Panama was over-subscribed
by $100m, ending at 5225m.
Panama paid li per cent over
Libor, one quarter per cent
more than a year ago. but still
very good.
Bankers are impressed by
the way the Government
manages its debt and has
succeeded in bringing it down
from 72.9 per cent of GDP in
1978 to 62 per cent at end 1981.
At the same time that the
banking sector is expanding, a
small money market and
foreign exchange operation is
growing as well as a reinsurance
market The London-based
broker firm of Marshalls took
over Fultons Panamanian
operation in June. Banks do
not really need brokers by
their side in Panama, but it
does save them time and money
to have them there.
W.D.G
CANAL PAYMENTS
(rooo)
Fiscal year
Tolls nwanw
Payments
1977
164,685
2,095*
1978
195,735
2,095*
1979
209,522
2,095*
1980
293444
77,652+
1981
303,080
76*63+
• Before FY 1980 the annual payment
To Panama was paid by tha Depart-
ment or Snu. The Panama Canal
Company relmburaed S519.000 To tha
U.S. Traakury.
t According to the Panama Canal
Treaty an annual amount oF up to
SlOrn will ba paid out of Canal
operating revenues to the extent that
such revenues axesed expenditures of
tha Papama Canal Commission. Pay.
mant of S2.B99.000 was made on
Juiy 16 1981 through supplemental
appropriation enacted by Congress.
Testing time ahead
CONTINUED FROM PREVIOUS PAGE
efforts to pursue a politically
negotiated settlement for £1
Salvador. In July Panama
managed to bring the Salva-
dorean armed forces, the guer-
rillas and a personal representa-
tive of Fidel Castro around the
country, situated as it is at the
crossroads of the Americas, is
an ideal springboard for the
U.S.
As regards the stability of
Panama itself, 'there is no sign
of any serious discontent despite
same table, reportedly for the the government's disarray. Inter-
national banks continue to set
up shop in Panama every year,
.which is a firm stamp of
approval that the country
remains to the outside world a
relatively prosperous island of
stability. The country's credit
rating, at a time when the gloss
is coming off major Latin
American borrowers like
Mexico, is good; despite the
large size of Panama's external
ddbt of ?2.6bn which is 62 per
cent of gres s domestic product
There is a testing year ahead
as the Government implements
unpopular economic measures
recommended by the Inter-
first time.
Relations with Wasbongtoa
are uneasy, although they are
considerably better now than
they were before the Torrijos-
Carter treaty came into force
in 1979 and began to transfer
control of the canal to Panama.
Panama was the most
vociferous critic in Latin
America, of the support the U.S.
gave to the UK in the Falklands
dispute. Its policy was hardly
surprising given the long and
bitter history of Panama’s own
"Falkland Islands*' — the canal.
With Central America in
turmoil— even the region’s only
established democracy, Costa national Monetary Fund (IMF)
Rica, is no longer free from the in its latest programme with
political violence— Panama’s Panama. Real wages will con-
contmued stability in the face tinne to decline on 1982 for the
of revolutions In El Salvador second year r unning , particu-
and Guatemala is of great lariy in the public sector where
strategic importance to the IMF has asked for no across
Washington, the board salary increase.
Apart from the canal, Panama Teachers and the government
is the headquarters of the U.S. were locked into a dispute in
Southern Command, which is the middle of July over a pay
responsible for co-ordinating rise which, if given, could un-
relations with all the armies in leash an avalanche of other
the region as well as providing wage demands,
training facilities for officers As the country moves towards
from all over Latin America. elections in 1984, with little
In -the event of Washington certainty at the moment that
ever taking military action in the official PRD is going to'win.
Central America— considered the Government will be sorely
unlikely net impossible — it tempted to buy votes with
would almost certainly be expansionist policies it can ill
directed from Panama, The afford.
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Why not explore its
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We shall be glad to send you our Booklet
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In short, we can cater to your individual needs
Do write to us:
ESTUDJO CONSUU1YO FINANCIER© SJV.
P.O. Box 52, Panama 1, R.P.
Telex 2046 (TRT) and
2641 (WUI)
WE AIM TO HAVE ONLY SATISFIED CLIENTS
PANAMA
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Offers you professional services
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Tel: 64-2186/69-3517
Talex:
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PANAMA 4
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e
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4
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0
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0
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(
( «-l »
‘4
Financial Times Monday August 9 1982
9
\
9 own
Uon
w
fe its
-*
.
44- *■
*1
PANAMA HI
Historic waterway struggles to keep pace with maritime traffic forecasts, as David Gardner reports.
Concern over canal’s capacity problems
PANAMANIAN guidebooks
and tourist handouts seldom
make mention of the Panama
Canal without adding the
gushing comment that the
canal is often described as
the eighth wonder of the
world.”
Historically a unique piece
of engineering and built at
'great human and finan cial
cost, “ Teddy Roosevelt's
canal .” is indeed an imposing
sight But there is growing
concern In Panama lest the
waterway go the way of the
Other seven wonders and be-
come of interest primarily to.
historians and tourists,
A
Rising costs
The root of the problem is
capacity. The SO km-long canal
has three groups of locks to
raise or lower ships the 26
metres above sea level that
the canal reaches at Its high-
est point. The maximum size
of vessel these locks can cur-
rently handle is 67,000 dwt —
the so-called Panamas size.
At a time of rising energy
costs, the use of bulk cargo
carriers of up to 250,000 dwt
taking the longer route round
Cape Horn works out cheaper
than using the canal.
The second capacity prob-
lem concerns the number of
transits the c anal can accom-
modate. When the 1977 Tor-
rij os- Carter treaties (setting
op a joint XJ.S .-Panamanian
a dminis tration, the Panama
Canal Commission, to run the
waterway until the end of the
century) came into effect in
1979, the canal could take 37-
38 ships a day. Bottlenecks
became frequent, with back-
logs of up to 180 ships hav-
ing to await' passage for be-
tween three and five days.
This ** sent a chill through
the shipping industry ” recalls
Mr Dennis McAuliffc, ■ the
Canal Commission administra-
tor, and induced the opera-
ing company to step up capi-
tal expenditure, which since
then has averaged between
$30m-S35m a year, in addition
to an annual outlay of some
$60m-$80m on maintenance.
More capacity has been
eked out, now standing at an
average 42 ships a day, and
expected to rise to 44 ships a
day when the capital improve-
ments programme is finished
early next year.
Additional capacity will
come from the loss of Alaskan
North Slope oil tanker traffic,
which will switeh to using the
new Trans-Panamanian oil
pipeline to the west of the
eanal when it comes on stream
in September.
The view is that on this
basis the canal will keep paee .
with maritime traffic fore-
fasts early or mid-1990s.
The two main alternatives
being canvassed on what
should happen then are to
build a new sea-level canal,
some 10 miles west of the
current waterway, at a cost
of over $20bn, or to expand
the existing canal, primarily
by building two new and
larger sets of locks at the
Atlantic and Pacific termi-
nals, and by widening and
straightening the Gafllard
Cut (originally and appro-
priately called “ the Snake “).
The cost of the expansion
plan would be $2bn-$3bn.
•.* :.r:
The canal earned a record
$303m in toll revenues in the
fiscal year ending last October
This more modest option
could accommodate vessels of
up to 170,000 dwt, on a par
with the Suez Canal, accord-
ing to Mr McAuliffe, or up to
250,000 dwt, in the view of
Lopez Moreno, the Panama-
nian engineering company
which last year did a prelimi-
nary study of the expansion
plan. Under it, an extra seven
ships a day could complete
the average 16 hour transit,
keeping capacity in line with
demand, the Canal Commis-
sion believes until about 2005.
Any decision depends on a
more detailed estimate of
the volume of world trade
towards the end of the cen-
tury, and the size and shape
of tiie merchant fleets and
ports that serve it, than cur-
rently appears to exist An
additional problem, discussed
in a separate article on for-
eign policy, is the freqeunt
tension between the Panama-
nian and U.S. Governments
over the Canal Treaties.
The U.S. view of the future,
as expressed in last year's
annual report to Congress on
the Canal Treaties, is that
“ traffic forecasts do not sup-
port the sense of urgency
advocated by Panamanian re-
presentatives for Immediate
decisions regarding such a
major expansion of the
canal."
Nevertheless, the long lead-
times involved in any expan-
sion project— up to 10 years
in the case of a new sea-level
waterway — mean that a deci-
sion has to be made soon.
Last month, Panamanian pres-
sure and Japanese enthusiasm
finally persuaded the U.S. to
give its blessing to a feasi-
bility study for sea-level
canaL The study will also
examine the alternative ex-
pansion plan.
The Panama Canal Treaties
commit the UJS. and Panama
to exploring alternatives to
the present canal, although
the U.S. has so far been reluc-
tant to do so. From the U.S.
point of view, only 6 per cent
of its maritime traffic goes
through the canal. From
Panama's vantage. 62 per cent
of all traffic originates in the
U.S. and 31 per cent is on its
way to the U.S. In the case of
Japan, the canal’s seeond
largest user, only 4.6 per cent
of waterway traffic originates
there, though 21.2 per cent bas
Japan as its final destination.
Japan's enthusiasm for the
sea-level eanal is partly linked
to Its dependence on im-
ported energy, making the use
of ever-largcr ships cheaper,
but it is mostly the desire to
be in on the huge financing re-
quirements and the actual
building of a new canal.
The huge financing needs
of a new sca-Ievel waterway,
which would inevitably re-
quiret multilateral funding,
makes the less ambitious ex-
pansion plan the more likely
starter.
In the meantime, the
canal’s hold over trans-
isthmian traffic is far from
secure. The new 03 pipeline,
from Puerto Annuel! es In the
Pacific to Bocas del Toro on
the Atlantic/ Caribbean side,
will siphon off $55-60m a year
in canal revenue when work-
ing at full capacity of 50,000
barrels an hour, probably by
the middle of next year.
Toll revenue for the eight
months to May in the current
fiscal year has again risen, 'to
£2 15.3m against $2O0.6m fu
the same period in 1980-81.
Over the full fiscal year,
revenue should reach a new
peak of some $320-325nu
Next year this figure will fall,
whether or not the Commis-
sion goes ahead with the
planned 9.8 per cent toll In-
crease from October, which
would In any case offset less
than balf the lost North Slope
oil traffic.
A further challenge already
in place is Mexico’s railway
* landbridge ” for moving
containers across the isthmus
of Tehuantepec.
Potentially more serious
threats, in the view of Sr
Fernando Hanfredo, the canal
deputy administrator and the
senior P anamani an in the
P anama r ana i Commission,
come from a whole range of
transshipment technologies
now' available — and not only,
clearly, to Panama. Slurry
pipelines for example, to
transport coal, coke and
minerals propelled by water,
or grains pipelines using air
propulsion, could be built
elsewhere in Central America
or southern Mexico.
In this context ft Is worth
noting that coal and grains.
along with crude oil, are the
three main cargoes through
the canaL Of last year's ton-
nage of 189.4m Panama Canal
net tons (1 per cent =100 cu ft
of cargo carrying capacity),
36.4m was crude oil, 21.6m
was coal, and 32m was grains.
This certainly goes a long
way to explaining Panama’s
sense of urgency in wanting.;
to explore all the possible
alternatives to the existing
canal, before its competitive
edge becomes irredeemably -
blunted.
Colon project: a showpiece of the Panamanian economy
Investment soars in trade zone
MORE THAN a decade of unin .
temipted growth has made the
Colon Free Trade Zone, along
with the canal and the offshore
banking sector, the showpiece
of the Panamanian economy.
Turnover last year reached a
record S4.4bn. ten times the
1970 figure and nearly twice the
total turnover of 1978, the last
complete trading year before
land previously under U.S. con-
trol was handed back for free
trade zone use under the 1977
Canal Treaties.
Added value generated inside
the zone has nearly doubled —
from. $117.7m In 1978 to $207.5m
last year — and -the Colon com-
plex now accounts for just over
4 per cent of Panama’s Gross
Domestic Product (GDP). In-
vestment in the zone, both pub-
lic and private, has leaped. In
the 1970-78 period a total of
$20. 6m was invested. Since the
Canal Treaties came into effect
in October 1979 nearly 575m has
been poured into the zone as
part of a SI 33 -3m development
programme, about half the funds
for which are being provided by
the World Bank and a cons or-
tlum of Japanese banks.
Expansion
The 1,000 sq km released to
Panama under the treaties
opened up the possibility of
major expansion for the free
trade enclave, tucked into 94
overcrowded acres at the bot-
tom left hand corner of Colon’s
Manzanillo Bay. Under the
current plan:
• The zone's commercial opera-
tions are spilling over to 300
acres of new land at France
Field across the bay. The new
area is already one third occu-
pied by new zone users, while at
a later stage the two zones will
be linked across land reclaimed
from the inner bay area known
as Folk River.
• Work on the infrastructure
of a new industrial estate on
200 adjacent acres . is well
advanced. Three companies—
from the U.S., Brazil and Hong
Kong — are to start putting up
the first assembly plants there
in November and expect to be
operational by June next year.
Yet the zone is having its
problems. It suffered the first
casualty of its 34-year existence
last month yrtien Nlramar, _ a
companv producing cubic zir-
conia — a semi-precious stone
used for imitation diamond
jewellery — ceased trading
after accumulating losses put
bv the company at “close to
S3.5m" over the past three
rears. The collapse in the price
of finished stones from $25 a
carat to $0.65 was the mam
element in Miramar’s demise.
But the company was one of
the first industries to be set up
in the zone, with a $3.5m state
credit under a Government
scheme to promote labour-inten-
sive light assembly operations.
The company's closure is a blow
to the credibility of the scheme
— known as Maquila and con-
sciously modelled on Mexico's
experience in setting-up in-bond
light assembly operations on its
border wth the U.S. — and its
ability to generate employment
The Maquila scheme has man-
aged to attract only four plants
to Panama In three years —
making tuna fish nets, brassieres
and knitwear and processing
shrimps imported from India. It
has three Italian companies—
producing marble products,
shoes and hi-fi equipment — in
the pipeline, however.
On the commercial side the
wave of devaluations In Latin
America over the last six
months has meant that many of
the zone's 600 operators are
having trouble getting paid.
Nearly two-thirds of last year’s
. S2.35bn exports went to Latin
American markets — princi-
pally, Venezuela, Chile, Ecu a- ■
dor and Argentina.
Traditionally large stocks are
being run down and some com-
panies are believed to be facing
severe cash-flow problems. A
group of Asian traders of long-
standing in the zone said quite
simply : “Nobody is buying any-
thing. ’*
The trade zone management
believes, nevertheless, that at
the present rate of expansion
employment by 1985 will have
doubled from 1980 levels.
According to management
figures the number of jobs in
the zone rose from 9.490 in
1980 to 11.019 at the end of last
year. Preliminary figures show
a small net loss this year, so an
average — and at the moment
unrealistic — total of 3,000 jobs
a year will be needed to meet
its tareet. The creation of iobs
is a vital element in establish-
ing the trading emporium's
social legitimacy, living, as it
does, cheekhy-iqwl with the
worst slum in Panama.
Colon has the highest unem-
ployment crime and infant mor-
tality rate of urtxw Panama.
One in three males is without
a job and the local unions re-
main to be convinced thaf_ the
free trade zone c?n materially
alter this. Over 3,000 zone jobs,
for example, are casual- By
management’s calculations these
jobs are equal to only 750 full-
time posts.
Some account of this at the
moment only sporadically
explosive situation is taken in
the apportionment of the 9133m
development funds, exactly a
third of which are earmarked
for refurbishing the decaying
inner areas of Colon, much of
them made up of precarious
wooden housing, punctuated by
corrugated iron and packing-
case shacks and barracks put up
early this century to house the
workers that dug the Panama
Canal.
Indeed this large pool of cheap
surplus labour — 100,000 in
Panama as a whole — is sold as
one of the chief attractions of
the zoDe. According to zone
management projections labour
costs in Colon will over the next
three years be one seventh of
U.S. labour costs, a quarter of
Mexico's and a third of Hong
Kong's.
The other selling points in-
clude near-comprehensive inter-
national banking services, no
taxes beyond a maximum 8 per
cent income tax, a modem in
frastructure (ports and con
tainer terminals upgraded at
costs of $50m, a new airport just
over an hour away, potentially
unlimited and cheap warehous-
ing space on former canal lands)
and, of course, Panama’s unique
resource, its position.
Everything is in place for new
traders and light manufac-
turers to use these resources to
consolidate otherwise frag-
mented world markets. Whether
they do or not will clearly
depend on what happens in those
markets rather than anything
more that Panama can provide.
D.G.
Moves to boost the
tourist industry
PANAMA is nobody’s synonym
for tourism. Yet Panamanian
tourism earns as much
foreign revenue as the
country’s five main agricul-
tural and fisheries exports
(bananas, sugar, shrimp,
coffee and fishmeal, in order
of importance) put together.
The sector's contribution to
limi ting Panama's climbing
current account deficit is im-
portant but declining, partly
because of the growth in
spending by Panamanians
abroad but mostly because of
the more than doubling of
Panama’s traditional trade
deficit over the last five
years: from 5493.8m in 1977
to $L.035bn last year. In
1977, net earnings from
tourism covered 28 per cent
of this deficit; last year, this
coverage had shrunk to 10.3
per cent
The pall of violence overhang-
ing Central America extends
in tourist if not political,
terms to Panama. After a
period of selling the region
as another, and cheaper,
Caribbean, the tourist in-
dustry has largely dropped
Central America from its
catalogues.
The number of visitors to
Panama has begun to slide.
TRADE DEVELOPMENT BANK
OVERSEAS, INC.
P.O. Box 10709 - Panama 4, Panama
•
Calle Manuel Maria Icaza, No. 14
Telephone : 64-5122 Cable : SUDAFBANK
Telex: 2776 -2408 -3354
All banking transactions,
domestic and international
Figures for 1981 record
360,914 entries, 8.13 per cent
down on 1930's 392,069 peak.
In the five months to May
this year, 141,089 entries
were recorded, 6.6L per cent
down on the same period last
year. Something like a third
of this incoming traffic is
made up of businessmen,
bankers, and convention dele-
gates. Since about two-thirds
of the Panamanian economy
is based on transit — of cargo
and passengers through the
canal, of goods through the
Colon free trade zone, and of
money through the offshore
banking sector — much of this
clientele is " captive.
In the short to medium term,
Panama's best hope of boost-
ing its earnings from tourism
is in catering to this traffic,
and above ail in persuading
visitors to stay longer, com-
bining business and pleasure.
. The state tourism institute
(IPAT.) appears to have
identified this option as the
clearest path forward in the
apportionment of its capital
spending. IPAT, operating on
an exiguous annual budget of
some $5ni, manages a capital
spending programme of
5103.5m.
The major slice of this is a
$47ta project— with 524 in pro-
vided by the Interamerican
Development Bank (IDB)
530.9m of which has gone
a major convention centre.
ATLAPA I for Atlantic*
Pacific). The rest is ear-
marked for the refurbishment
of the city's old colonial
quarter (Casco Aniiguol on
the western corner of Panama
Bay, and Panama la Vieja.
the ruins of the oJd city of
Panama burnt to the ground
by the pirate Henry Morgan
in the seventeenth century.
The 7,000 capacity ATLAPA
centre is now 90 per cent
finisbed and has been in busi-
ness for 18 months. Sr Felix
Estripeaux, the fourth
IPAT director in six
believes that the con
centre’s only serious
Latin America is Acapulco,
and that its credentials will
be firmly established after jt
plays host next year to the
IDB annual conference.
D.G.
This announcement appears as a matter of record only
1
yiyiv
Institute de Recursos
Hidraulicos y Electrificacion
Panama
US $60,000,000
Medium Term Loan
Guaranteed by
The Republic of Panama
Banco Exterior de Espafia
Banque INI MB- Interunion
Libra International Bank S.A
Orion Royal Bank Limited
Lead Managed by
The Bank of Yokohama, Ltd.
The Daiwa Bank, Limited
The Mitsubishi Trust and Banking Corporation
Societe Generale
Toronto Dominion International Bank Limited
Managed by
Banco de Bilbao, S.A Banque Europeenne de Tokyo S.A
Credit Commercial de France (Panama), S.A. Credit Lyonnais (Panama Branch)
Credit Suisse Den norske Creditbank (Luxembourg) S.A.
The Hongkong and Shanghai Banking Corporation
Provided by
Banco Exterior de Esparia The Bank of Yokohama, Ltd.
Banque A/MB- Irtterunion The Daiwa Bank, Limited
Libra International Bank S.A The Mitsubishi Trust and Banking Corporation
The Royal Bank of Canada International Limited, (Nassau)
Societe Generale, Panama Branch . The Toronto Dominion Bank
Banco de Bilbao, S.A Banque Europeenne de Tokyo S.A
Credit Commercial de France (Panama), S.A. Credit Lyonnais (Panama Branch)
Credit Suisse Den norske Creditbank (Luxembourg) S.A.
The Hongkong and Shanghai Banking Corporation Banco Cafetero, S.A (Panama)
Banco de Ponce Banco Fonsecas e Bumay, Brussels Branch
Banco Industrial Colombiano de Panama, S.A LTCB (Schweiz) AG
Nippon European Bank S.A Sofis Limited
%
Arranged by
if Agent
The Mitsubishi Trust and Banking Corporation
August 1982
a&SM)
- nV With 2,600 branches in France and present in more than 60 countries,
:Sm$.
Societe Generale in Panama.
Societe Generale is a leading French bank
and one of the world's largest banks.
i
ws
wM
Offshore Branch in Panama
Edificlo Iberoamerica
Calle 50, Apartado 6 - 3689
Estafeta El Dorado - Panama
Tel.: 64.96.11
Telex: INTEL 3363 SG PANAMA PA
TRT 6460/61 SG PANAMA RA
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SG0€T€ G€N€RAL€
French and international bank
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Financial Times Monday AugM ; 0/398$-*V
* * * •- i* . * •
PANAMA IV
William Chislett examines Panama's amazingly fragmented political scene
Political activities hotting up n
&.V: i
J .
V ,Jj
a*
v ot£« „
APABTADO 8911
PANAMA 5, RER DE PANAMA
TELEX 2591 MUNDIAL PG ' VIA INTEL
FEVERISH POUTICAL -activity ties. But if this happened, the
is taking place as 13 parties in party ran die risk of disinte-
an electorate of barely 800.000 grating because of intense
prepare for the 1984 presides infighting in the ranks,
tial and general elections, the “We cannot allow ourselves
first since the 1968 coup which this luxury at the moment,” he
brought the late Gen Torrijos said.
to power The candidature of Gen
The battle lines are not yet Paredes the head of the
drawn up, as the political scene National ouard. would, as a
is amazingly fragmented. There remit, be almost certainly foi-
ls the official Democratic Revo* posed upon the party since he
ludonary Party (PRD), formed was the only man capable Of
in 1979; several centrist parties, a . consensus,
such as the Christian Democrats The is suffering from
and the Liberal Party; the ^e unpopular measures which
Panamenista Party, run by the the Government is having to
legendary octogenarian populist carry out as the economy slows
Dr Arnulfo Arias (his third and £own. A serious revenue short-
last Government was ousted in fall makes it impossible to carry
1968, after only 11 days in “L. , e *** nB i? n - iat (and vote-
office); lien there are Left-wing catching policies. Aji d the PRD
parties like the People's Party, cannot distance itself very much
the mainline Communist Party, fn>m the Government— to whom
which supports the PRD. Moves « owes its patronage— without
are afoot to try t 0 form a united weakening the party further,
opposition front to the PRD,
which would exclude the Left
According to o Gallup asso- — -
dated opinion poll, carried out
last month in Panama, only 26
per cent of the electorate would
vote for the PRD if elections
were held now — despite the
party's privileged position of
working from within the state
apparatus.
Half ibe electorate is un- 1
decided, which is hardly sur- i
prising given the alphabet soup
of political parties, or “social '
clubs’* as those parties which
are little more than a handful
of personalities axe scornfully
called. The poll also confirmed
the widely held view — and the
Government’s nightmare — that
Jf an opposition front is formed L
around the charismatic figure of £
Dr Arias, then it stands a good
cbance of beating the PRD.
The PRD is very much * _ . . _ . - ,
modelled on Mexico's long-ruJ- ^ en ® uf>eI1 Dan© Paredes,
ing and broadly-based Institu- the man most talked -a bout
tional Revolutionary Party. The as the likely presidential
PRD was conceived as a vehicle candidate of the official
t° legitimise the incongruous Revolutionary Democratic
political bureaucracv formed iartv
since 1968 and to avoid political rarry
extremes. Marxists, social demo-
crats and some businessman _
make up the party's ranks.
While Gen Torrijos was alive,
the PRD managed to maintain a
semblance of unity since nearly p aTiama j s once a train
everybody respected his °
decisions. But his death has at the eentre of attempts
brought the divisions right out .... , ..
into the open. to resolve the daily
Sr Ernesto Perez Balladares, mnr| , vn i at :] P nrnhlems
the remarkably frank secretary- more vomuie pro Diems
genera! of the Prd. said that, 0 f the Central American
ideally, the party should elect .
its presidential candidate by region, as David
holding a series of primaries .
representing the various tenden- l»aroner reports.
I
i V
P.O. BOX 810
PANAMA 1, R.P.
TELEX: 2641
2586
REINSURE PG
Cables: “LARSA 1
Tel: 69-2166
® OOMFAftlA BSC MMUKOtt
CHAGRESS.A*
A TRUE FORCE IN THE
DEVELOPMENT OF PANAMA
in association with LBl and Estudio Consutiivo
do Saguros S-A. ot Panama
p.o. box e - less a. dorado
PANAMA. REP. OF PANAMA
TELEX: 2448 'CHAGRES PG'
TELS: 23-7388 AND 23-8903
The PRD bas resorted to the
totalitarian practice of demand-
ing party membership as a con-
dition for new employment in
the public sector, Sr Perez Bal-
ladarcs claimed that this prao
tice bad now ended since “any-
body can join the party and
Then vote for another. We have
to win people’s respect."
* He said that only one-in-four
people in the 130,000 strong
public sector were PRD mem-
bers and a further 160.0PO
people outside Government.
At the same time, there is
good reason to suspect that the
Government is Increasing the
divisions among the opposition
parties by exercising undue
influence on the electoral tri-
bunal.
The tribunal, headed by the
brother of Colonel Noriega, the
chief of military intelligence
and the next-in-line to head the
National Guard, if Gen Paredes
enters the political arena, has
accepted the registration of two
parties, with the party name of
Panamenista. One is a break-
away movement, allegedly
encouraged by the Government,
and the other is the main sec-
tor, headed by Dr Arias.
Dr Arias's colleagues say that
be reluctantly registered his
party after he was told by the
tribunal that if tie did so. the
other party would be declared
iHegal But having registered
and despite the fact that the
tribunal declared that most of
the signatures presented by the
breakaway group were forged,
no decision has yet been made
as to which party wiH carry the
name Panamenista.
And to complicate matters,
the Supreme Court has ruled
that the method used by the
electoral tribunal to dedare
that the signatures were forged,
was incorrect. The whole sur-
real procedure smacks of ^ a
crude trick to weaien Dr Anas
and confuse the electorate.
■Hie Government and the
National Guard are still terri-
fied of Dr Arias. l%e opposi-
tion parties, particularly the
Christian Democrats, hope to
cash in on this fear and per-
suade him to Throw his support
behind a common candidate, but
not to run himself because the
arduous campaign would wear
down bis frail health.
“He is still a tremendous
vote-catcher," comments Sr
Ricardo Arias Calderon, the
Christian Democrat leader.
The guard is afraid of Dr
Arias because every time be was
president he tried to change its
high command and reduce its
political influence.
...
.. .
•• : **&::
.The ambitious former vice-
president, Sr Riaurdo de la
Espriella. who became Presi-
dent at the end of July,
succeeding Sr Aristedes Roya,
whom the late Gen Torrijos
had hand-picked to- he
president
General Paredes — the man to watch
Gen Ruben Dario Paredes,
the man most talked-about
as the likely presidential
candidate of the official
Revolutionary Democratic
Party
GENERAL Ruben Dario Paredes, the new
head of the National Guard, is the man
most talked-about as the likely presi-
dential candidate for the official Revolu-
tionary Democratic Party (PRD), wben
free elections are held in 1984 for the
first time in 16 years.
The 49-year-old general, who seized the
command from Colonel EToreucio Flores
in March after an internal coup, is
expected to retire from the Army within
a year and be nominated by the PRD.
Regarded as the political heir of
General Omar Torrijos, the country’s
strong man who died a year ago, General
Paredes Is, like General Torrijos, an
enigmatic figure.
Had Torrijos lived, his closest aides
say that he would not have run for
president However, he wanted to remain
the power behind the throne. He would
have done this by selecting a civilian to
be the PRD's candidate.
But with General Torrijos dead and
with the guard still very much the main
power centre, the star of the ambitious
General Paredes has risen. Gen Paredes
called last month for the elections to be
brought forward. The PRD. furthermore,
believes that at this moment General
Paredes is the only man, civilian or mili-
tary, with the charisma and capacity to
maintain the consensus policies of late
General Torrijos and fill the power
vacuum left by his death. The PRD,
formed in 1979, is a deeply divided parts'.
General Paredes is the only military
man with direct administration and poU-
tical experience. He was Agriculture
Minister in the 1970s.
After studying at the military academy
in Nicaragua under the Somoza dictator-
ship. he -worked his way up through the
ranks. At the time of the 1968 coup he
was head of the Colon military zone, the
key area near the canal.
In 1969, he was with General Torrijos
at the horse races in Mexico City when
a group of colonels tried to oust General
Torrijos in his absence. General Paredes
returned with General Torrijos to
Panama and triumphantly marched on
Panama City against the rebellious
colonels.
Great emphasis has been placed on the
anti-communist tone of some of General
Paredes recent speeches. They have been
well received in Washington, ' which
regarded General Torrijos as too pro-
gressive.
General Paredes’ aides refute that be
is plaving an anti-communist card and
say that he will continue the finely
balanced middle path started by General
Torrijos.
W.D.G
Ambitious foreign policy aims to
ease Central American conflicts
“ I DON’T want to get into the Since then the situation in Panamanian and Mexican pxv- Britain in the Falklands. Gen
the history books; I want to Central America has deterior- posals with
get into the Canal Zone," is ated rapidly. Following the elec- approach to
the Sandinistas’ Parades on the other hand, said
Washington in in a much publicised statement
OVERSEAS MARKETS
INFORMATION
FOR SALE
perhaps the best-known of the tlon of President Reagan in February and the U.S., reply that appeared to echo simitar
many pithy remarks attributed November 1979, Panama was at through its ambassador in sentiments expressed by Gen
to Omar Torrijos, the populist the centre of a last-ddtch Managua in April — the last- Wallace Nitting. head of U.S.
general who died in a plane attempt to resolve the bloody known major diplomatic contact Southern Command, that the
crash last year after dominating conflict in El Salvador bv nego- between the two sides. Panamanian armed forces
Panama for more than a decade tiation. The initiative. 'the so- But the Panamanian attempt needed more, not less, inte-
as nobody else had don* called Carter six-point peace to bold the conflicting regional S* 4 * 10 ? u - s - f orcps -
throughout the small Istimuan pJail of December 1979, was iviv „ lM lucll 3lnlcu K „.. VJ
republics chequered history. originated by Torrijos. aims looks like being. swamped multiplied on the domesUi
It was Torrijos^ successful. The Carter plan foundered, by ibe Increasingly violent turn fr°?t- Here too. economic stas
prosecution of this aim — tiie the Panamanians believe, on of events. Last month's commit- nation, mounting unempioy
to their stated policy
contradictions
iginated by Torrijos. aims looks like bein^. swamped multiplied on the domestic
The Carter plan foundered, by ibe Increasingly violent turn front. Here too. economic stag-
v\ •. i n j. * * .. . • . tiehAti TnrtimhmV HTHkniniflV*
deeply-felt national aspiration
intransigence
ment of Honduran troops to men t, and pending restrictions
to recover from ‘yankee which encouraged the Salva- cross-border action against the f or fed by falling tax revenue
imperialism ” the 1,000 sq km dorean guerillas to go ahead Salvadorean guerrillas in an< * . incr easingly unmanageable
of Canal Zone land that bisects their abortive "final offen- Moraran province, and the more indebtedness, nave
the country — that first gave sive '' of January 1981, in order than 20 dashes between UB./ tempted Panama -Into n mat
Panama a place on the world t0 strengthen its own negotiat- Honduran backed anti-San- denunciations : of the UR in a
stage quite disproportionate to j ng . haiK j against the incoming dinista forces and the Nicar- ^ to revive me sense
its tiny size. Reagan Administration, aguan army in the last six weeks of national conesnm tnat wa.
Although much of this inter- Thfl and am noinrimr fhp wav towArric si SUCn ft ICfttUTC Of tDC P“?
Reagan Administration,
The move backfired
Aiuiuugu uiubu ui umo m«>- me move uauuucu and ore pointing the way towards a 1m -- .. •
national projection was bound indeed helped Washington in rapid escalation into a regional ieaam * U P 10 ine 031131
up with Torrijos’ own engaging jt s efforts to get Cuba ostra- conflagration. rriovanrpa
and forceful personality, ctsed in Latin America, and to Panama, for all its relative Vxnevanceb
Panama after his death is still underline its thesis that the stability, would be lucky to The Panamanians, however,
G Where on earth did you get all
this information about the East
European, Latin American and
MidEast markets? It’s so detailed
and up-to-date.^
C No secret. From the
Financial Times series of
newsletters.^
playing a key regional role, civil wars in El Salvador and
notably through its mediation Guatemala and the Saudi nista
connagranon. ’Grievances
Panama, for all its relative Wievanco
stability, would be lucky to The Panamanians, however,
escape the consequences of such do have genuine grievances over
an outcome. Its efforts have the Treaties. The enabling
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efforts in the rapidly escalating revolution were simply the .however made some headway. legislation passed by the UJS.
Central American conflicts. latest chapter in tiie East-West Last month, the first, and Congress on the eve of the
Torrijos' solution to a super-power conflict secret, . “ prenegotiations ” setting up of the new joint
foreign policy problem was to Panama is again the centre between El Salvador's contend- administration (Public Law 90/
internationalise it, bringing to attempts to resolve by nego- ing forces took place in 76), which actually makes the
bear tfie support of other tiation the daily more volatile Panama. In May, the Pana- U.S.-Panan#anian more account-
regtooal and non-aligned Central American conflicts, with manians secured approval of a able to Congress, cuts a swathe
nations with potentially 811 ambitious plan which stands 14-point refinement of their through the spirit of the
common interests. apart from previous attempts proposals from the Presidents Treaties.
Thus, when Panama fell out t0 bring peace to the area in of Venezuela, Colombia, Hon- Under this law, the X’-S.
with United Brands in the 1[ , coniains » single
early 70s, Torrijos successfully wigmal proposal,
mobilised other regional n • • »
banana producers for the subse- x nil Cl pa! H1IT1S
quent “Banana War’ in 1974, Q n {j, e contrary, the initiative
which led to the setting up of attempts to synthesize into the
tiie UPEB (Union of Banana for a negotiated consensus
that it contains not a single duras and Costa Rica, a senior Federal Labour Relations Auth-
original proposal. Sandinista representative, and ority (FLRA) actually con-
_ , . t the Prime Minister of Belize. ducted trade union elections
Exporting Countries).
— . . , the Prime Minister of Belize. ducted trade union elections
Principal aims The shift in regional alliances
On the contrary, the initiative that has emerged in the after- h^no^dLbt vtithin the
tempts to synthesize into the math of the Falklands conflict wte/of the- Treatiesrte more
sis for a negotiated consensus also tilts the balance slightly in ‘SS from
SESLu Pan^ihiS redded K *
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His appetite whetted by tius principal regional powers ithe Venezuela for example, which _ maW ^ rilnlomatic' affront •
early success against the might u.S„ Mexico. Cuba and had hitherto stood foursquare a Siallv P Panamanians
of the U.S. fruit companies. Venezuela), and the Central behind Washington on Central a s Vnmff case when they
Tom] os then took on Washing- American countries involved. America, has given the plan areue |h at ' a nv use of the 14
ton over control of the Canal proposals, contained in a enthusiastic backing. Cuba, us southfera Command base*
zone. Tins was no easy task, jw-noint working oaoer drawn which- en thusi asti cal lv backed hi
10 U.S. military interventions aggression pacts between the _
in Panama this century, the last Sandinista Government in integrates ” into Latin America , u h u “ PenSneir Neufrali^’
of them m 1964, and the Nicaragua and the U.S., and ^ the expectation of backing o oer ation of the Panama Canal,
passions aroused m the U.S. between Nicaragua and its f °r it* attempts to normalise A P we ii as the Protocol to the
during tile Canal Treaties nego? neighbours in the U^.-backed. relations with Washington. L 17 countries,
tiations— not least^by Ronald increasingly hostile Central Panama itself however, in *e But ma^ of Panama's object- ,
Reagan. • - American Democratic Com- vacuum left by Torrijos, tends ions appear- more designed to •
But Tomjos was able to con- munity (Honduras, El Sjtivador, increasingly to speak with more reforge a sense of national
f R a ^. aad £ro “ Ju, y «’ than one voice on foreign policy purpose and look, increasingly
sovereignty into a Pan-La fin Guatemala), issues, lljis is partly through transparent. This sense of drift
Amencan aspiration. Panama • To promote a negotiated fear of the eventual outcome is hardlv surprising. Torrijos
won prestage internationally-- solution to the civil war in El in Central America, and partly was able to combine support
, beCause of an unresolved for the Sandinstas with friend-
^ KH? p n °i struggle for power between the ship with Carter. While taking
SST* 1 equa J ly ^portant, a detente between the U.S. and civilian executive and all- on the HAS. fruit companies he
high degree <rf social cohesion Cuba. powerful National Guard at created the conditions for the
at home. Rarely can ®e The proposals draw on 14 home. largest offshore banking centre
banner of national unity have different sources from eight For example, when former in the Americas. While giving
been waved to such effect countries ranging from Presi- President Royo argued publidv strong backing to reformist'
I Torrijos toUaw^ througfo dent Reagan s February 24 that Panama should send troops minded officers in the Saha-
with an activist regional role address to the Organisation of to back Argentina's claim to dorean and Honduran annie*-
wWch won wide popular back- American States (OAS) to the the Falklands, General Ruben support which extended to
3 5 ario Paredes - lhc = head of the to plan a co5>in the
and diplomatic support for between President Fidel Castro National Guard following a former ease— it was Torrijos
Nicaragua* Sandmi^a National of Cuba and President Jose palace coup in the spring, SLed who gave^S^e to the Shah of
J 4 ' Portillo of Mexico. categorically that Panama had Iran at Washington's behest
(moderation .
F* tion of the Treaty Concerning
tiations — not least ^by Ronald and increasingly hostile Central
Reagan. American Democratic Com-
But Torrijos was able to con- munity (Honduras, El Salvador,
vert an issue of Panamanian Costa Rica, and from July 6,
sovereignty into a Pan-Latin Guatemala);
American aspiration. Panama • To • promote a negotiated
won prestige internationally— solution to the civil war in El
including grudging respect Salvador;
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from Jimmy. Carter's Washing- • and to open a process of
ton— and equally important, a detente between the U.S. and
high degree of social cohesion Cuba,
at home. Rarely can the The proposals draw on 14
banner of national unity have different sources from eight
been waved to such effect countries ran girts from Presi-
Ix ? ezPortil.oofMmdco. SategoricalTy that PaSahad Iran TtWa7hrgton'7behest ^
1 _T hus * Wp 6 i 11 ti,e working precisely the requisite number Even in this, one of bis mort
eks 10 .^ a J? nte I of froops to defend the canal- controversial actions, Torrijos’
defeat the 4t£year-old dictator- the territorial sovereignty and with no surplus for foreign all-encompassing pragmatism
i j 0f 1116 ^ omoza family, rs frontiers of the Central Ameri- adventures. shown through- “Three thousand
the clearest cut example this can states, to prevent hostile Equally, Sr Royo bad strongly vears of empire reduced to !»
ro!e. Huf here as eteewhere, armed grbups using a neighbour- backed the joint Panama-Vene- people and a doe." was his
Panama did not act alone, but ing state’s territory as a zuelan initiative for a Latin comment after his only me* 1,
1 “ “jnnert with other nations sanctuary and to control the American security conference— ing with the Shah. A hard ***
of the region, principally arms traffic which sustains excluding the U.S.— in the wake to follow in more wavs thafl
Venezuela and Costa Rica.
them, amalgamates Honduran, of Washington’s support for one.
Financial Times Monday August 9 1982
TELEVISION
LONDON
SB
f
APPOINTMENTS
-40-7.55 am Open University r,-, * -■ * • 9.30 am Sport Billy. 9.50 Do We
(Ura High Frequency only). I 01112111 S V^llOlCC ReaUy Need rhe Rockies? 10.45
93 Hong Kong Phnoey. 9.30 1 Crazy W)Jrld of gporL U16
: Jaf-mory. 9.45 Paddington. There are not many laughs in Croydon but Roy Hudd will Lime House on the Prairie. 1300 W 7 _ J JI J . _ , n 1 • _ - A
9-SAtfhy Don't You . . .? 10.15- probably extract a few when he goes back there in the Comic Cockleshell Bay. 12.10 pm Rain- Ww ftflC! fl/HYlAC
19^Thjnk? Backwards. 1.00 pm Roots series about how comedians started (BBC-1 6.50). bow. 1330 Under Fives. 1.00 ▼ T Cm m iijl ^ Vr.SJ.iJ .U.dJLKJa,^')^ UlwuLIMi»jlU£l UU vVl'V*
• .-NwrALfftr Noon. L30-L45 Post- Panorama investigates the IRA men who find refuge in Eire News, plus FT Index. L20
SSJ’-JK ESS. A JSvaitS *-« - «• m **™#™** -*
CM >manor Vows \r ooa _ srt in CovHit Garden it will seem as historical as some of the
jnfs. g master’s 1930 epics. Earlier A. J. Wentworth BA continues.
' -635 lest of the West, starring The original stories are classics but, despite Arthur Lowe, there
’ L uel Higgins. ’ is a lack of style about the series.'
\ 0,50 (jmic Roots: Roy Hudd's Radio 3 celebrates two anniversaries — those of Philip Larkin
- Coydon. and 'Solomon. Larkin is honoured with a sequence of poetry
:7.20 Ector Who and the and jazz, featuring Bessie Smith among others, and on his 60th
Mmsiers. birthday. Solomon plays on record Scarlatti, Haydn, Chopin and
■'.-8.10 Pnorama. Beethoven to mark his 80th.
by Alfred Hitchcock in London. Since most of the scenes' were 5 j _ 5 DifFrent Strobes. F . orras - becomes managing
new senior financial appointments appointed Mr David Brewer as
Mnsiors.
Pooraraa.
SJW Nws.
9JS Th Monday Film: “A
7" 1 Glide for the Married
. Hfi." ‘starring Waiter
. Msjthau and Robert
• Mdse.
10.55 BA in t Music: B. A.
Rofertson introduces his
latezught show.
1L28 Neus Headlines.
1130 Taking the Strain: Noel
Ednonds investigates
stres.
ANTONY THORNCROFT
6.40-735 am Open University.
1030-1035 Play School.
5.10 The Interview.
+5.40 Laurel and Hardy in “ Me
and My Pal.”
6.00 'Hie Waltzing Policeman.
6.05 The World About Us.
6.55 Six Fifty-five Special.
735 News Summary.
730 Welcome to Wodebouse.
WTteMMA Mas* f^k K. 3 reaponsibiUdea for the Gnmpt SSreaiiW ~~ DT^'Weai^rT^papy n^e^a™ 7^“ “ H “e Ta I
Show. larS'lSr !™« ini C ° !V ° r *‘ e 0lam,Di: * retary, financial director. Mr f0 ™ e r local esSye dlrecto?
#0 ° £Sc sfow^ E ‘ eCtr,C 12^5 .» Close: Sit Up apd °“' * . Mr Brian Ce, heed of market- “ mmenMl ° f *“"■»* ***'
*■*> EE Sr Lialea with Sian Mil* >, Topy Motsao, sales and Kfctt ’MKBa&'S * The CALOUSTE GULBEN-
^S^SSTSTST MoSS^Fm™ markCti ^ USSSI S^ted^OTeid ^
— been appointed an executive Mr Gordon Camming, formerly Mr David Phillips 1 has been sue- assistant director (Axis) of its
g.oo htv News. 9.oo Minder. 10.28 6.30 staying Alive. 9.00 Minder io.30 d,rector * director of Grindlay Brandts ceeded as Group comoany secre- uk branch from October 4. He
htv New*, 10 x 0 Soap, ii.oo Police Hiii sueer Blues, n.30 Trie jazz * Insurance Brokers, has been tary of LEIGH INTERESTS by ,- s drama officer for the Greater
s, £& cvn™/w>.«--As HTV west Mr Jim Smith, projects direc- appointed managing director of assistant _Group company secre- London Arts Association, and
545 m»L ■ director of John WaddingtOD of RACAL - DECCA MARINE following the reorganisation of director of product engineering,
c’nn ■t'h J!.. v A -A „■* KirkstaJL Mr Tony Mason, pre- NAVIGATION has appointed Mr its main operating groups and +
viously managing director of Alan D. Wheeler technical dircc- the creation of a new property ... WTeH
D d Bemn - Waddingtons, becomes managing tor . He was a director of System group. Mr J. C. H. Mellor be- ^? 0TT ^H MHJv
635 Help! Community action director of Waddingtons Business Designers. comes Group finance director. MARKETIm* BOARD Has
with Viv Taylor Gee. Forms. * Pirkfords Group and Mr H. Laf- appointed Mr Andrew L. Howie
635 Crossroads. * ...» . vh^Simnnc i,n«. hpen fer, y Group finance director, “ ^ in " an *° succession to Mr
7.00 The Krypton Factor. Mr Ke" Forster has been appointed | 0 lhe board of CHEF Pr °P ert y Group. Both appoint- ^
7.30 Coronation Street. Zlr^om hStoleV AND BREWI ® “ a ">■«»*"*"'» OMober 1. ™‘^ s vi “ r dl ^J“ 0 “ rile , ' p S
8.00 A. J. Wentworth, BA wat tni-rf nANDLtx- tive director. Mr FitzSimons is formerly occupied by Mr Howie
830 World in Action wauvjuk. finance, systems and strategy W'. A. TYZACK has made the *
. . ‘ _ . J , director of the brewing and re- following hoard changes: Mr Mr Iff. E. Acland has resigned
9.00 Quincy starring Jack Mr George Richardson has tailing division of Grand Metro- F. H. Davies has been appointed from ^ bnard of MANOR
MugIuan - « politan, finance and systems chief executive, Mr J. A Tyzack NATIONAL' because of other
10.00 News. aiMON HiWulNttKING as director of WMTB and a non- has become joint managing commitments. Mr T. H. Need-
HANDLEY-
becomes vice-chairman, the post
formerly occupied by Mr Howie
*
Mr M. E. Acland has resigned
v _ >■ , . . , a vftki vifvw* - — ■# o 0 ^ii imiimiii ciiiia. |TAi X ■ 11 ecu
Frenzv” starrinc Jon - S,7i rtor * wth J :oD ^ mD S executive director of Watney director rinteruational) and Mr ham has joined the board as a
rrenz> siamng jon resnonsihilities for the Grnno's r— r* w . J . v. . r*
l i i ‘h
All IB A legions as London The Monday Marines: “ The
except at U- follewins times: KL, H "f,, "I”,™,. " “
ANRI I A Days. 9-00 Lou Grant. 10^0
■ HIVULIA Late News. 10 35 Aujour
9-33 am European Folk Tales. 9.45 Fiance 10.40 Thriller. 12,
The Adventures of Niko. 10.15 The and Weather in French.
Galway Way. -1.10 North Saa Saga. _ _ . . ,,
11.S0 Captain temo. 1.20 pm Anglia GRAMPIAN
News. t2-30 Monday Film Matinee: 3M am First Thing. 9J3!
Barry Foster.
1235 am Close: Sit Up and
Listen with Sian Phillips.
t Indicates programme
in black and white
D. W. Wenninger, company sec- non-executive director. He is a
retary, financial director. Mr former local executive director
The CALOUSTE GULBEN-
In order to devote more time KIAN FOUNDATION has
to other main board activities, appointed Mr fain Reid as
The Monday Matinee: “The Jokers." 6.00 HTV News. 9.00 Minder. 10.28 6.30 Slaying Alive. 9.00 Minder 10.30
5.16 Here's Boomer. 6.00 Channel HTV News. 10.30 Soap. 11.00 Police Hilt Street Blues. 11.30 The Jazz
Report. 6.15 Stingray. 6-30 Happy Story. Senes: Ronnie Scott's guests are the
Days. 9-00 Lou Grant. 10.28 Channel HTV Cymru/ Wales — An HTV West Sinn Tracey Quartet and Julie Amiet.
Late News. 10.35 Aujourd'hui en except: 11.0S-11.30 am Bailey's Bird. 12.00 Company.
Fiance 10.40 Thriller. 12.00 News 12.00-12.10 pm Dacw Mam Yn Dwud.
and Weather in French. 430 On Safari. 4.45-5.15 Goglis. 6.00 TYNE TEES
Y Dydd. 6.30-7.00 Report Wales. 11.00
tor. lias been appointed manag- CHILTERN CRAWFORD INSUB- tars’, Mr Derrick Armstrong:
mg director of UK-based cherai- ANCE SERVICES. *
ea] plant contractors SIM-CHEM
succeeds Mr Ian Lancaster who
has left the Foundation to set
Mr Jan Ufsmni is to take over up his own company dealing
News. TZ-30 Monday Film Marinee: 930 am First Thing. 9J35 Sesame
A Cry from :he Streets/' starring Street. 10.35 Children's Morning
Maj Bygraves. 6.00 About Anglia. Matinee: "The Grizzly and the Troa-
6.30 Benson. 3.00 Minder. 1030 sure." 1.20 pm North News. 2.30
MnauMrthiurRor sir ° 13 loo-i 2 30 am 920 am Thf Good Word 9,25 Nor,h ‘ la s,rnon Engineering company) Mr Tim Ratlimel] has been as acting managing director of with holography, video and com-
The Amazing Years of Cinema. ‘ It t N 8 a ? d s 'h ¥ Se ”Jl lie from August 1 upon the retire- appointed managing director of OMRON TERMINALS (UK), puter grapbics.
SCOTTISH
fST^SS SfC: ment of Mr Marc Hamsbaw.
a Indoor Bowls. IT. 15 Thriller. 12.40 am Monday Matinee: " Easi of Sudan." Portrait of a Village. 10.50 Amazing
_ . „... . n Tf- 2.30 Rases cricket 5.15 The New Find
!?'°? i P n and Barney Shew. 6.00 North Eatt
DOWSETT PILING AND FOUN- British subsidiary of a Japanese
DATIONS. part of Wests’ Group electronic cash register roanu-
Mr John M. Hirst has been
BbRDER
starring Anthony Quayle and Sylvia
Syms. 5.15 The Electric' Theatre Show.
vmnoa T5"*™,™ 8nd Barne v Shew - 6 00 North Ea£l Mr Frank Real, director. Davies International. For the past two facturer. following the resigns- anDQ i ote d manamne director of
Years 'of *he a cii»ema f ' 1 i?i5^Adventurel **«*». *.**««•'* Pritchard and Richmond has years he has been overseas direc- don of Mr Peter Russ. Mr JSESSl OTAS He "»£
Cl Parsley. H.20 Brass in Concert. Lie. 9(» M.ndcr 10 30 North East been elected chairman of the tor. haring transferred from Ulsurai was previously planning ripmtfv m3naB i n « director
oyms. 9-la Tns CieClriC rneatre snow. ui '-«i»i®y. 1 . i|. w , ID 39 Thrillxr V* rn t - — — - WI. "a • ‘"S ujimsmu T.—
B OO Summer at Si*. 6.30 Pro- Celebrity 1^0 pm Scottish News. 2J0 Action J 1 ** 5 - 10-3Z Thriller. 1^00 Lawrence s POSTAL EQUIPMENT TRADE associated company Wests’ Pii- director.
Anni.nn Q (Vi ii. n w n r in «i Co.f.irA flnH AdwAniurc: 9 Wanted: The oun- ■ Aceni^YAfDmXT . _ * _ _ „
3-30 am History of the Motor Car. Angling. 9.00 Minder. 10.30 Feature and Adventure: ” Wanted: The Sun-
9.55 Vicky the Vilcme. 10.15 Unramed Film: " Neither the Sea Nor the Sand." dance Woman " 6.00 Scotland Today.
World 10.40 Flying Kiwi. 11.00 Roses 12.15 am North Headlines. 6.40 Crime Desk. 9.00 Mindar. 10.30
Cricket: coverage or ihe match between 1318 c,,l ‘ 10.40 Police Story.
Lancashire and Yorkshire from Old GRANADA TGVJ
Trefford. 1-20 pm Border News. 2.30 9.30 am The History of the Motor I oW
deputy managing director.
+
ASSOCIATION of Great Britain ing, where he was managing + r mwi-wu T-nr-
succeedlng Mr Panl Bcechanu director of the Singapore subsi- Mr Robin Cobb, deputy chair- r^tnii niiv
IDC - * ? iar £ Mr John manas- man and ra ana E in S director of ^™r ef fiSTTo be Jl"
TW.nl. 1.20 pm acre 2.30 e.30 m„ to. „„mry * ... ■ a™ ««- m..™: - a,,,,, a. „ . _ ... Lm KdM to reSred” D.riJ ■&£ X pre.ent an
Rosas Cricket. 5.15 Private Beniamin. Car. 9.50 Sport Billy. 10.10 Untamed’ 9.35 am Sesame Street. 10.35 Story Earth. " starring Kerwm Mathews. 4.13 Mr A. R Matanie, depUtj chief U UT 1 964, a. e . Gold-BI>iil. managing director of ^sjgiant comptroller of finance
6.00 Lookaround Monday. 8.15 Cam- World. 10-35 The Flying Kiwi. 10.55 Hour. 11 35 Untamed World. 11.50 Ulsier News 5.15 Film Fun with Derek general ma nage r. IS tO retire * ihe Publishing UrOUp 01 ArgUS r-- Greater London Council
paign: tmphal. Burma 1944. 630 Try The Roses Match. 1.20- pm Granada European Folk Tales. 1 30 pm TSW Griffiths. 6.00 Good Evening Ulster, from PHOENIX ASSURANCE on CARLTON REAL ESTATES Press, have become directors of 7™, npMr inu«: finann* nfflrpr Mr
1, -“ BDrt ’ r &'"■»!? JlSSi ■"«?« the following board the PERIODICAL PUBUSHERS gS^r dtef 'lS
ULSTER I SUCCI
10.10 am Sosame 5ueei. 11.10 240 IDC.
Robert. 1.20 pm Lunchtime 2.30 Man-
day Matinee: *' BarUe Benaeth ihe ..
CENTRAL 5.00 The Roses Match. 6j6~ Granada Boomer. 6.00 Today South West. 6.30 Angl
9.45 am The Galway Way. 10.45 Reports New*. 8J5 The Summer Show. Happy Days. 9.00 Lou Grant. 10.62 TSW
Bailey's Bird. 11.10 Venture. 11.35 9.00 Strangers. 10.30 Thriller. 11.45 Lata News. 10.35 Postcript. 10.40
Stingray. 1.20 pm Central News. 2-30 'Superstar profile. Thriller. 12.00 South West Weather. g.g
Roses' Match. 5.15 ttI^'twooi Us* ounT^c i^day. 5 5 Here ? s Ba'cT Konor ' iT* ‘TRhSSS has been appointed general changes: Mr Leo Toppin has re- ASSOCIATION
6.00 The Roses Match. 6-30 Granada Boomer. 6.00 Today South West. 6.30 Angling. 11.30 News ar Bedtime. manager (home) and Mr G. Signed as chairman, but remains *
YORKSHIRE
December. Since then, Mr
Leslie Whiteman has been act-
SPEED has ing finance officer but he retires
The Monday Screen Matinee: ” Battle
Beneath the Earth." 6.15 Survival.
6.00 Central News. 9X0 Mindar. 10-30
Thriller. 12.00 South West Weather.
HTV
9 .56 am Beachcombers. 10X0 Kum
9.30 am Sesame Street. 10X0 Jason
of Star Command. lO.ffi The Rosas
Match: coverage from Old Trefford.
Deves deputy- generai manager a director. Mr Graeme Jackson SACCONE & SPEED has ing finance officer but he retires
(home) from ctOober 3- has been appointed chairman and appointed Mr A. J. Conway as in September. Mr Riggs will
* Mr Richard Prickett financial financial director. He was have responsibility for an annual
AGB Research has made the director. Mr Dennis Collett has director, planning, analysis and ILEA revenue and capital
Contrasts. 1X5 Lou Grant. 12X5 am Kum. 10-40 Clapperboard. 11.05 Vicky of My Friands. 10-26 Tarzan. 11.15 1-20 pm Calendar News. fhs
9.30 am 3-2-1 Contact. 10.00 FHands between Lancashire and Yorkshire! I following appointments to the become a non-executive director, control for Avis. Mr J. *S. Nord- budget of more than £SOOm.
Come Close. the Viking. 11X0 The Gr eatest The Real World. 11-45 Larry the Lamb. Rosaa Match. 5.15 The Roses Match.
rUAMNn Thinkers 1.20 HTV News. t220 Mon- 1.20 TVS News. 2J30 Monday Matinee: 6.00 Calendar fEmley Moor and Bel-
V^rlANIMEL. day Matinee: "All Night Long," star- " Battle Beneath the Earth," starring mont editions). BX5 Happy Days. 9.00
1X0 pm Channel Lunchtime News, ring Patrick McGoohan. 4.15 Warner Kerwin Mathews. 5.15 The Adventures Minder. 10X0 Brass in Concert. 11.15
What‘8 On Where end Weather. 2X0 Brothers Cartoon 5.15 Mr Merlin, ol Black Beauty. 6.00 Coast to Coast. Journey to the Unknown.
CHANNEL
RADIO 1
RADIO
ms Si
i flies;
5.00 am As Radio 2. 7,00 Mike Read.
9.00 Simon Bates. 11.00 Dave Lee
Travis. 12X0 pm Newsbeat. 12.45 Paul fS). 2.00-5.00 You and the Night and
Burnett. 2X0 Steve Wright. 4JO Peier the Music (St.
Powell 7.00 Stayin' Alive. 8.00 David
Jensen. 10X0-12.00 John Peel (S). RADIO 3 1
Living. 10.30 Daily Service. 10.45 On
Holiday. 11.00 News. 11.03 own
Your Way visits Dover. Kent 11.48
RACING
BY DOMINIC WIGAN
in the Northumberland Sprint arguably the season's Toughest Stewards Cup gets under way
She won't get a penalty for this and most exacting sprint, the after the Northumberland
win-" Stewards Cup. Sprint today. Thirteen run-
Nicholls, however, made it . A better bet for today's big ners have been declared for the
clear that he was against the sprint is Blue Emmanuelle. who race including Soba’s stable
idea of saddling the fiUy. "I has the advantage of a high companion. Music Night. The
RADIO 2
nnuivj O- 55 >n f Wither. 7.00 News. 7.05 Sequence ol poetry for Philip Urkin's. - — . - . , ... . ... .
Morning Concert fS) . 8 x 0 News. 8.05 wth birthday. 9.55 Solomon et bo shall we Ten me children? 4.40 Story of her nine races since her 33-1 to do so — but the filly s long- double at the last Newcastle
5.00 .m Don Durbridge - (S). 7J0 Morning Concert (continued). 9.ob 10.45 j«z in Brite.n featuring Company Time, s.oo 9 “ success in a Thirsk maiden in term, and possibly short, future meeting by landing the Harry
jy Moore (S). 10.00 Jimmy Young News 9.05 This Week s Composer: (S). 11.1S-11.18 News. Shipping lorecasr 5.55 Wearher. pio- j /'v.iii»n<r« n,,—
3). 12.00 Gloria Hunmford (S). Frank Bridge fS). 10.00 Coileagium gramme news. 6.00 News including n v*' v ^f en * ,etTer ®?JT , P eat0 ^*' Challenge Cup from
tistician s.r Ronald Avimor Fi-her 7 jo You^ ySS i* jTwSSTffo? jSvST SOB A wUl be id the line-up for wouldn t recommend running draw near the rails. The head five-y ear-old should go well but
Proms the Royal Aiben HaiL pan i; 12.55 weather, travel: proqiammo news, today’s Northumberland Sprint her because she is still young, conqueror of Crown in the probably not fast enough to
Vaughan Williams (S). 8.10 what i oo The world at One i.4o The Trophy against the advice of Shp is only three,” he said. Sporting Chronicle Handicap at cope with Chris’s Lad.
pirhm iLfTnu 3 * p'art ?]? 0 1 g? 0 "*? «n p n!v«- ^iD , wite1ia l, ik!? jockey David Nicholls, with Soba may win today’s race— Haydorit early in July, Blue
Sequence ol' poetry lor Phiiip^Larkin's 3.02 AitVinoon Theatre 4 30 whei whom she has won eight out she will probably be odds-on Emmanuelle completed a fine
»). 12.00 Gloria Hunmtora (!>). Frank Bridge (S). 10.00 coileagium
OO pm Ed Stewart (S). 4.00 David Aureum (S). 11X5 Anthems by Ebdon
uniRon (S) 5.45 New*: Soon 6.00 and Cartridge (S). 11 .3S John Field
hn Duon (S). 8.00 Folk on 2 IS). Piano Concertos (S). 1.00 pm New*.
RADIO 4 fj
6.00 am News Briefing. 6.10 Farming 7.:
Financial Report 6.30 Ju*i a Mmuie After the StiUingtoo filly had by heeding her young rider’s Ben Jarrow just a day before
hn Duon (S). 8.00 Folk on 2 (S). Piano Concertos (S). 1.00 pm News. 6.00 am News Briefing. 6.10 Farming 7.20 _ Start ihe Week with Richard
,0 Humphrey Lyrtleton with thp Bait 1.06 Heifetz and Piaiigorsky (S). 2.00 Weak. 6XS Shipping forecast. 6.30 Baker |S| 8X0 .The Monday Play (S).
..Jazz (S). .9.55 Sports Desk.-' 10.00 Marine* Musicals - (S). 2:55 New Today. 8.35 The Week on 4. 8.43 9.30 Kaleidoscope. 9.59 Weather 10.00
*r-I? 5 I h .l won Saturday's Cora! Book- adrice.
Soba’s big Goodwood triumph.
New Today. 8.35 The Week on 4.' 8-43 9.30 Kaleidoscope. 9.59 Weather 10,
makers' Handicap at Haydock, Saturday’s race appeared to the three-length winner of the
her handler, David Chapman, be an easy win. However, she Harry Peacock race, Blue
•Law Game. 10X0 Star Sound. Records fS) 4.55 Nows. 5.00 Mainly The Midnight Fox by 'Bony Biyars. 8.57 The World Tonight 10 30 Science j gee how she j s y, as run n j ne tfjnes s j nce May Emmanuelle receives 17 lbs
JO Brian Matthew preMnts Round tor Pleasure (S). 6.36 Music for Organ Weather, travel 9-W News. 9.06 Now. 11.00 A Book at Bediimc. I rnmnrrnw mnrnincr hpfnrin S 'ritri nnlv H Have acn over- from Soba
flight (stereo from midnight) and (S). 7X0 Plants, Ganas and Numbers: Start the Week with Richard Baker (S) The Financial World Tonight. 11.30 tomorrow monun 0 Deiore 9 ana oni. Id da>S a^O over irom aona. „ . ,
*2.06 Sports Desk. 1.00 am Encore ’ An appreciation of geneticist and sta- 10X0 News 10.02 A Small Country Mus.c at N.ght, 12.00 News. J — l -“'* "■*"***" — x...i-,~- —
deciding whether to run her came the worst draw in what is The six-furlong Nottingham
NEWCASTLE
2.30 — East brook
3.00 — Dragon Fire
S.S0 — Bbte Emmanuells**'*’
5.00 — Hydrangea
NOTTINGHAM
3.45— Chris’s Lad
4.45 — Secret Lightning
WINDSOR
2.30 — Boy Trumpeter* 1 *
3.30 — -Worrell*
If took some strong thinking to buitd an electron
microscope with tootUNtox magnification powen
The world’s best objective lens.
Resolution is the ability of a
microscope to visually define
an object. The higher the
resolution, the greater the
clarity or distinction. Yet
obtaining a high resolution isnt
easy, especially when, for
example, the atoms you're
observing are only i angstrom
in size* (i angstrom -
1/10.000.000 of a millimeter).
Hitachi engineers, working at
their advanced Naka works,
employed a number of
different advancements to
improve resolution, the main
accomplishment being the
development of the world's
best objective lens.
By formulating extremely
complex electron wave
theories, using the most
advanced materials, and then
incorporating ultra-
sophisticated computer-
controlled machining and
fabricating techniques. Hitachi
was able to build a lens with a
resolution of 1.02 angstroms
[crystal lattice) — the world's
highest resolving power
attainable with any commercial
electron microscope.
Today. Hitachi engineers are
experimenting with new
designs with resolving power
estimated at a phenomenal
suD-angstrom level.
tfitactii’s new H-800 promises progress in
the exciting new Reid of biofeciiioiyf
Bacteria tnat produce beneficial drugs arid chemicals. Har-
dier strains of crops that actually thrive in harsh weather. New
vaccines for people and livestock BY studying and changing
DNA molecules, biotechnologists hope to revolutionize food
production, human health and many other aspects of science!
• Much of the progress in this exciting area is dependent on
the electron microscope Hitachi is one of the world s leading
: producers tsf them. And their new H-800 Is a prime reason why.
The H-800, with its analytical function, is one of the world s
most advanced electron microscopes, in fact, it's the first to
offer computer assisted control. With it, the H-soo’s operator
fe able to-load a specimen and examine it in many ways
alt at a speed and efficiency that’s unsurpassed.
With a flick of a switch he can see the interior of a specimen
at l,000,000x magnification. And with a resolution or clarity
that's the world's highest!
Another touch of the controls allows the operator to ‘‘map*
the surface of the specimen at 200,000x magnification with •
the H-800's scanning function. Additional analytical functions
invaluable to scientists include high resolution STEM (Scan-
ning Transmission Electron Microscopy), energy dispersive
x-rav spectrometry and electron energy loss spectrometry.
The advancements incorporated in the new H-800 are
reaping benefits in many other fields beyond biotechnology,
in medicine, its helping to develop new drugs and identify
disease. In computer science, its being used to analyze
defects in tiny semiconductor chips, its also an integral part
in geology, metallurgy, biology and more. The H-800's uses are
truly limitless!
As proud as Hitachi is in developing this advanced electron
microscope, its just one example of their commitment to
improving the quality of life through technology Right now,
Hitachi research and development engineers are working on
hundreds of other promising projects -from digital audio
equipment to large-scale fermentation plants for antibiotic
production.
You see, Hitachi has some pretty strong ideas about
tomorrow.
Structural model of DNA. Only an
electron microscope with a
resolution of less than 10
angstroms can reveal such detail.
HITACHI
A World Leader in Technology
THE MANAGEMENT PAGE
How Mike Woodcock got hold
of a fast little number
Jason Crisp begins an occasional series on companies exploiting the
liberalised UK telecommunications market
ASSOCIATED Business Systems
is one of the more exceptional
companies to leap in and seize
the opportunities created by
the liberalisation of the UK
telecommunications market It
is remarkable for the speed
at which it has operated and for
its agility in sidestepping the
bureaucratic and technical ob-
structions that beset anyone en-
tering the field.
When the Government an-
nounced plans to open up the
British telecommunications
market in 19S0, Mike Woodcock,
ABS's managing director, recog-
nised the opportunities it would
present
He was already close to the
callmaker. This was all elec- ties to make the advanced elec-
tronic and included a light-
based two way loudspeaking de-
vice which had cost £15m to
develop.
Woodcock certainly did not
tronic computerised callmaker.
Since going into production
ABS has developed a variant on
the more basic callmaker which
prevents a telephone being used
After the
Monopoly
have the £650,000 needed to for personal calls. It has also
clinch the deal and set up in licensed an automatic call
the UK. In a disarmingly casual diverter from an Australian
way he says: “I had never company. If someone rings, say.
raised that sort of money before ? doctor's surge ry when no-one
and only knew you were sup- is there the diverter will auto-
posed to get it in the City. So maticaDy dial out on another
I spent most of January going line and connect the caller
around banging on doors." directly to the doctor’s home.
And although it is also de-
The door which eventually
opened was at stockbrokers '’eloping its own products it is
James Capel. which arranged looking to manufacture
for Woodcock to meet a num- other . companies’ equipment for
Institutions.
sale in the UK and EEC.
. Financial Times Monday August a 1982 /
EDITED BY. CHRISTOPHER LORgZ
The terminal risk rf
failing to innovate
IF YOU want to survive in a ness were of the
new industry, you need hot "be $100,000 to $300,000;
.the first to break into it. But entered .in 1967, they
you’d better be a pretty quick and, today they are
'second or third, for otherwise to be between. $30m fi
ho amount of cash or .produo- . <xbe "domanaht d
tion volume will buy you? .way . tegrates within it nu
te- . v. ' -performance charac
• Tliisr warning, from Professor early- variations of
'.Tames Utterbadk of the Massa- —it becomes a sor
Jea Intel
*re 53m.
fethnated
M $30om-
lig n r ln-
tiM
e product
of multi-
ebusetts Institute of Tech- purpose standard, /in _©ther
nology, is a particularly hitter words. Utterback cfes the ex*
pill for established companies ample of the Modft T Ford,
which find their territory, in- - whose front. rater-coded
vaiad by an outsider's radically engine and. rear dive became
new product or technology, the dominant desist for some
Utterback says that established ye^rs, after & perip when the
firms tend to react to competi- motor; industry haqoffered cars
tt p j oil C4UV vlUOc l U Liltr ... ■ ■ • _ .
market. After a period with fledgling ABS began mailing although the money had not woodra ckis varyof be coming
Telephone Rentals he set up on businesses in central London. been raised negotiations with Just a looping company enurn-
DASA were reaching their final out other people s products.
° TT o 1C ale o iinliL-ali' tn
his own in 1971 with a small The callmaker found
electrical engineering company markably strong demand, de- stages.
in Dorset installing telephone spite its £325 price, selling over Two remarkable things stand
equipment. Today it employs 1.000 last year with limited mar- out with ABS: the price it paid
about 30 people and numbers keting effort or resources. And DAS A for the worldwide rights
household names among its j n December last year when the for the products and the speed
customers. Department of Industry made at which everything happened.
He is also unlikely to start mak-
ing high volume low margin
telephone handsets.
tiveaew products and technolo- ' steam, electrH, or internal
gies by improving their. existing combustion power, together
ones, rather than rapidly ^th front or reaifwheel drive *
switching to the new. • • front or rear ensues, and many
As a result, though the Im- other kinds ofvaftant
proved version may flourisb for ' :q to of the realms why late-
a tune,.the established company comers find it difficult to break
almost always ends up being ^ this stele is that the
forced out of the market by the move towards Standardisation
intruder. of the baric rigjig n offers the
Hugh Rautiedge Utterback’g warning Is: . con- innovative firm m & opportunity
Mike Woodcock: AB5’s allmaker was the first product to receive tained in a new yp? publication tn.shift towards £rgra>scale pro-
government approval for a tdecommunkahons attachment on innovative Process, duction processes. with aH its
Evolution versus Revolution.”* advantages. of unit cost redue-
option on a fourth factory unit UK. The abjective is to have Based on a private symposium tkra.- Not ail jeompandes with
and is looking at a further two. an outlet in each country' — for senior executives of mem- brilliant product ideas actually
Hugh Routiodga
Mike Woodcock: AB5’s callmaker was the first product to receive
government approval for a telecommunications attachment
proved version may flourish for ' Quo of the re
a time,.the established company camers find d
almost always ends up being ^ ^ ^
forced out of the market by the — e towards;
intruder. " baScde
Utter-back's warning Is . con- innovative firm
tain ed In a new HOT publication to shift towards]
on ** The Innovative . Process, duction process
Evolution versus Revolution.”* advantages of a
Two remarkable things stand equipment— such as ordinary option on a fourth factory unit UK. The objective is to have I Based on a private symposium tion.- Not all
it with A HQ- tho nrini it nsifl .-1 1 . . ■ . . r .j . i_ 4 I tr.-w worn. , ><u
customers.
ABS currently employs 75 and And since ABS has been making either traditional office equip- her companies of .MIT’s Indus- make this shift however, and
is recruiting more. It expects the callmakers its price has ment suppliers or telecoramuni- trial Liaison Program, the re- fail as a. result!
to employ 300. As Woodcock fallen from £325 to £200. cations specialists. At present port also contains contributions
Woodcock decided that the its first trawl for products for The actual decision to try and puts it — mainlv for the benefit The setting up and running it has a very limited cover of from, some erf the worid's lead- ' T? pv/llllfi /*TI 51 TV
quickest, and probably cheapest approval ABS submitted the buy the plant and the rights of the Department of Industry of the manufacturing side of the the UK. ing academics in enzymes and AM? ▼ VIUxlUlKM. J
course open to him was to em- callmaker.
was made on New Year’s eve. — “The number of jobs we ere- business is the responsibility of Obviously it would be foolish I biotechnology, micro electronics, ; jo ha seen whether
'• when - flexible manufacturing
recently, Utterbadfc sypteras, computer aided design
ploy a consultant to look for a Meanwhile, ABS had become January was spent hawking the ate here is totally dependent Tony Wilson who joined Wood- to make great' predictions on office automation and electronic will be affected
suitable product made overseas aware that DASA. the U.S. idea around the City, the fin- on the rate at which nur equip- cock from ICFC. Although the future of a company so publishing. ' . flexible manufacturing
which he might sell here. ABS manufacturer, had got into fin- ance was raised in February, in ment receives approval for con- Woodcock had run his own young and in such a competitive Until recently,' Utterbadfc systems computer aided design
was setup as a subsidiary of ancial difficulties and was anxi- March a final agreement was nection to the network.” company for ten years he did market. But so far it is show- says he (in the company of other aid so forth really fulfill their
his installation company with 0 u* to sell the rights for the raade W" 1 DASA. and the plant Manufacturing output is still not have any experience in ing every sign of being the sort academics) believed that a promise of much more cost
this in mind. callmaker to raise cash. Since was shipped from Massachu- being stepped up gradually, manufacturing. of successful entrepreneurial' company had a wide range of effective short production runs,
The product he found was a it already knew that there was ? etts t0 Doreet. During April Currently ABS is producing ABS has yet to establish company taking advantage of options ior entering a new wut there -is little reason to
thi s in mind.
The product he found was a
“ callmaker ” made by DASA. a
company based in Boston. Mas-
iction to the network.” company for ten years he did market. But so far it is show- says he (in the company of other and so forth really fulfill their
Manufacturing output is still not have any experience in ing every sign of being the sort academics) believed that a promise of much more cost
being stepped up gradually, manufacturing. of successful entrepreneurial' company had a wide range of effective short production nins,
Currently ABS
producing
* — . .. J , yet to establish company taking advantage of options ior entering a new But there -is little reason to
a good demand for the product it was assembled in three mod- 150 callmakers a week. Wood- firmly its marketing operation, the liberalisation of telecom- technological market. " You think this will alter Utterback’s
ABS commissioned ICFC Con- ern factory units knocked into cock envisages that the factory Although it has had some re- raunications that the Dot is so could enter early with a good conclusion that revolutionary
sachusetts. The callmaker is not sultants to look at the feasi- a ° d production began in will be run ou two shifts. He markable successes in export desperately keen to see. The T product and product innovation,. '^newproducte-Hudike
a highly sophisticated product, bility of making it in the UK w- _ . , T . « a«o expanding his premises; markets it still has to set up a only pity is that ABS is one of enter later with superb process new process techntfo-
It ran store 100 to *»00 tele- The recommendation was that 0n the evening of June 3 it he is likely to take up an full distribution system m the such a rare species. 1 3 ...
XL LdJLL aiun; 1UV LU 4UU LCJC- 4 l, A CMrf
phone numbers on a magnetic this was a good opportunity SJ5L2TSUS
tepewhidhi are listed alphabetic^ ^ that ABS shSGld buy S^JFESSSi
technology and attention to. ... gtes— tend to be brought in by
production and . still later with Sew entrants.
ally and selected manually. At a DASA s m
push of a button it dials the lity. ABS
number and, as it has a loud- the callma
speaker, there is no need to more efficii
pick up the handset until the in the U.S.
call is answered. ars spi
D ASA’s manufacturing c. p abi-
litj'. ABS was convinced that attachment and the next morn-
the callmaker would be made ^ the factory- was officially
more efficiently in the UK than opened by a junior miju^ter.
hV r During that time it concluded
uie ' export deals worth £3.om with
ABS set about buying the distributors in France, Spain
On their
bikes
ABS first started importing worldwide rights to produce, and the Netherlands,
and selling the callmaker a year manufacture and distribute the The price it eventually paid
ago as a 4 ‘ non-approved ” pro- callmaker and purchase DASA's DASA was £300.000 plus
duct This meant that, although stock, most of its manufactur- £500.000 in royalties over a two
it was perfectly legal to sell ing equipment, plastic moulds year period. ABS raised £650.000
the equipment it was tcchni- and patents. In addition it f rom s. G. Warburg. London
from S. G. Warburg. London
rally illegal to use it on the bought the worldwide distribu- Life. Ivory and Sirae and ICFC,
public network. Armed with the tion rights outside the Ameri- leaving tiie directors with a
Yellow Pages directory the cas of the next generation of minority slake, thus splitting
■■ ■ : — ABS from Woodcock’s original
— H __ m company.
_ Late last month it raised a
■ Vi JV#|lAf M further £300.000 in a rights issue
■ H II HlffW fl to establish production facili-
Sit down,
grab a pencil
and compare
Newport
with your
idealsite
.Associated Business Systems’
much valued assistant manag-
ing director, Tony Wilson,
had not ridden a bicycle for
a good many years. So when
Michael Woodcock, his
managing director, watched
him wobble alarmingly in
front oF a double-decker bus
in a busy London street, he
began to wonder if tbeir
Jaunt was such a good idea.
ABS was on the brink of
pulling off a remarkable deal
which would give it world-
wide rights to a telecommuni-
cations product; this would
also give it a very useful
foothold to tackle the newly
liberalised UK market
But it needed to raise some
money. In an attempt to do
this it had arranged to make
a presentation to the City
merchant bank, S. G. War-
burg. As the Dorset-based
ABS was a newly set up com-
pany much depended on the
personal impression the
senior directors conld make.
But on the day of the pre-
sentation there was both a
rail and a tube strike. The
three drove to London in
Woodcock's Volvo estate with
three bicycles — his own, his
daughter’s and one requisi-
tioned from a member of staff.
They parked in Regents
Park and — clad in. bright
yellow oilskins — weaved
their way to the City In pour-
ing rain.
As they chained their hikes
to the railings outside War-
burg’s comfortable offices.
Woodcock muttered to his
colleagues: “For God’s sake,
don't forget to take off your
cycle clips before we go in.”
Several hours later when
they reclaimed their machines
Warburgs had agreed in prin-
ciple to take over 40 per cent
of the company’s equity. And
for one wet ABS director it
no longer mattered that he
had no mudguards.
productivity in the manufactur- *jfTT Indus trial Liaison
ing process, failed. gram, 77 Massachusetts Aw
Entry costs rise dramatically ' Cambridge, Mass 02139 0.
through this cycle, Utteztiack -Telex 921473.
stresses. Early oiv entry costs ' T -
In. the integrated' circuit bust- 'VJlrlSIOpner JLrOlJ
Christopher Lot
The Need
How many minutes from:
Major East/West motorway
junctions?
Major North/South motorway .
junctions?
Main line rail links to London and
the North?
Container ship facilities?
The town centre?
A local airport?
A major international airport?
The centre of London?
Real, unspoiled countryside?
Beautiful, relaxing coastline?
What is the workforce within a ten
mile radius?
How good are labour relations
locally?
What is the total industrial acreage?
Are there ready-made factories and
warehouses to let?
Below £2.25 per square foot?
Is there a choice of small and large
plots?
Is it a Development Area?
Your Ideal Newport
Now write to Gareth Isaac or Tony Parker for the fall story.
Or telephone them on 0633 56906.
Iplease send me full details on development in Newport!)
Business
courses
SJoan Fellowship Programme,
Loudon. Niue month general
management and career
development programme. Starts
September 27. Fee: £6,750.
Details from Programme
Director, Sloan Fellowship Pro-
gramme. London Business
School, Sussex Place. Regents
Park, London NW1 4SA. Tele-
phone 01-262 5050.
Marketing Strategies in a
rapidly changing world
economy, London. September
9-10. Fee: BF 40,000 members.
BF 45,000 non-members of the
International Management Asso-
ciation. Details from Manage-
ment Centre Europe, avenue
des arts 4, 1040 Brussels,
Belgium.
Management of Innovative
Projects, Slough. September 6-
10. Fee: £345 (plus VAT).
Details from Urwick Manage-
ment Centre, Baylis House,
Stoke Pokes Lane, Slough,
Berkshire, SL1 3FF.
The Younger Managers Course,
Berkhamsted. September 6-24.
Fee: £1,720 (plus VAT). Details
from Ashridge Management
College. Berkhamsted, Hertford-
shire, HP4 INS.
Notice to the
Holders of
ORIENT LEASING
(CARIBBEAN) N.Y.
U.S. $20,000,000 S14%
Guaranteed Notes
Due 1984
US. $25,000,000 9 Vz%
Guaranteed Notes
Due 1986
VJ5. 530,000,000 12%
Guaranteed Notes
Due 1985
Effective August 2, 19S2,
the specified office of The
Industrial Bank of Ja-
van Trust Company as
Paying Agent for the
above-described issues is
245 Park Avenue
New York, N.Y- 10167
U.&A.
August 9, 19S3
CONTRACTS AND TENDERS
COMPANY NOTICES
LATIN AMERICA
• MARKET REPORTS
* REPRESENTATION FOR
MANUFACTURERS
RAFAEL PITTMAN
41 Tumcvillo Road. Wnl
Kensington. London W14 9P3.
Tsl: 01-385 2E74. Talax: 8 7/ 3 93
THE PEOPLE’S DEMOCRATIC
REPUBLIC OF ALGERIA
MINISTRY OF HYDRAULICS
HEAD OFFICE FOR HYDRAULIC
INFRASTRUCTURES
OPEN NATIONAL AND INTERNATIONAL
INVITATION TO TENDER
The Ministry of Hydraulics FD.G.LH.) is putting out an
open national and international invitation to tender for
the execution of geological and exploration work on a
certain number of dam sites within the framework of
detailed feasibility studies and preliminary project work.
Extent of Work:
Boring: 10 000 ml
In-situ tests: Pressure gauge tests: 500 : Unit
Scissometric tests: 100 : Unit
SJP.T. tests: 150 : Unit
Dilatometric tests: 100 : Unit
Permeability Tests: Lugeon 1800 Unit
Le franc 360 Unit
Execution of exploratory shafts: 700 ml
Interested companies may obtain the specifications from
the Ministere de llfydraullque - Direction Generate des
Infrastructures Hydra uliques - D.I.M.T. - KOUBA - ALGER.
Offers drawn up in accordance with the clauses in the file
must arrive in a sealed double envelope addressed as
follows:
Ministere de I'Hydraulique fD.G-A.) Bureau des
Marches, E.P. 86 (ex-Grand serainaire)
KOUBA -ALGER.
The closing date for receipt of tenders is 7th October 19S2
at 12.00 hours.
The contracture will be bound by their offers for one
hundred and twenty (.120) days.
THE PEOPLE'S DEMOCRATIC
REPUBLIC OF ALGERIA
MINISTRY OF HYDRAULICS
HEAD OFFICE FOR HYDRAULIC
INFRASTRUCTURES
OPEN NATIONAL AND INTERNATIONAL
INVITATION TO TENDER
The Ministry of Hydraulics f Direction Genferale
des Infrastructures Hydrauliques) is putting out
an open international invitation to tender relating
to:
Design, manufacture, supply and assembly of
a lift truck.
Interested companies may obtain the file from the
Ministry of Hydraulics (Direction Gdn4r*le
des Infrastructures Hydrauliques (D.I. M.T.)
KOUBA -ALGER).
Offers drawn up in accordance with the clauses in
the file must arrive in a sealed double envelope to
the following address:
Ministere de I'Hydraulique (D.G.A.) Bureau
des Marches - B.P. 86 (Ex Grand SSminaire)
KOUBA -ALGER.
The dosing date for receipt of tenders is 14th
October 1982 at 12.00 hours.
The .contractors will be bound by their offers for
one-hundred and twenty f 1201 days.
NOTICE TO HOICCIU OF EUROPEAN DEPOSITARY RECEIPTS' HORN IN .
NIPPON FIRE & MARINE INSURANCE COMPANY, LIMITED
EDR holder* aro Informed that Nippon Flrv A Muino InauniDar Company.
Limited hu paid a dividend to holder* of record March 31 1SEZ. The
cash dividend ' payable 1* Yen 5JSQ per Common Stock of Yen 50.00 per
old there end Yen 0.92 per share on the New Rights Shares. Pises ant to
Clause S or the Deposit Aanjement the poposftanr has c o nverted the net
amount, after deduction of Juuuiosa vrlth holding taxes, Into United States
Dollars.
EDR htMden may now present Coupon No. 5 for payment to the
undermentioned agents. 1
Payment of tn* dividend with a IStt withholding tax Is subject to .
receipt by the Depositary or the Agent or a valid aAdavft of residence
In a country raving a tax treaty or agreement wfth Jaoan. gfvtng the
benefit of the reduced .withholding rate. Conotrles c u rrent l y having . such
arrangement* ire as follows
. TAISHO MARINE AND
INSURANCE COMPANY U
A.R. of Egypt Ben mare Malaysia Singanorw
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Braxf! France Norway Switzerland'*
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Zambia
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Horst tribu Made.- Your regard for
■g departed And fives on II you
make a dan® on In tbeir name to
Hajp the Agar* work — towards a
Day Centra pr tho lonely, medical
treatment' onresoarcti for the old.
or. heip forme housebound. Every
£ achieves sorest deal for the old.
Ptesee let m. know tbe nemo you.
wish to coranamomta.
I Sand to* •
TH Hon. Treasurer
The Rt. Ion. Lord Mayb ray -King
Help the Aged
Room rrtNM, 32 Dover Street
fondan W1A 2AP
attention to sral^ finance, ^ electronics industry, I
capital resources and location.” new *^,^5 came in with the /
But baring. broadened his re- transistor, a further set of new
searches to more and more in- ones with the integrated circuit, i
dustries, he now suggests a less and yet another set with the j
rosy picture. The successful microprocessor. In each rase/
firms had all entered before several established companies
the appearance of what Utter- tried to break in, and soane sue/
back calls the "dominant de- ceeded. But the dominan/
sign." Firms that entered later creative force has - been nef
tended not to survive very long fl nDS( utterback, not on|
and those . that entered .before jjj - electronics 'but (originally
the dominant design emerged, cars, the jet engine, the elect?
but did not then shift their lamp, tufted carpet, even ma?
emphasis towards increaMug factored ice, and many more/ ,
lovafc
Hamlet/Young Vic
B. A. Young
The shape of things to come
This is a highly suitable
Young Vic production. It shows
us just what the script says,
not what the director thinks.
If Hamlet is in love with his
mother, or with Horatio, it is
for us to deduce it from what
■we see and hear. So Terry
Palmer directs the play with-
out frills, and I have never
heard a Hamlet in which the
inflection of the lines sounded
to me so consistently right.
This doesn't mean that they
are necessarily spoken with
grace or music', indeed,' the
general emotional level of the
speaking- is rather low. Edward
Fox's Hamlet, in particular, has
a destructive way of ending
every line on a, full dose, his
voice falling to 'the same note
at the end of each sentence. On
the other hand, this Handel has
one rare merit: he never ceases
to be the heir-apparent to a
powerful monarchy, to be “the
People are often asking how
they can see a good cross-
section of the work of British
architects in practice today.
What are the new directions
that critics write about? How
Colin Amery
reviews an
examination of the work of an
architect like Soane, or even
Lutyens, shows that it is possible
to experiment and evolve
ITT thin the rules.
Uncle Vanya/Haymarket
B. A. Young
*i T -
It's sad that Robin Phillips gesting more maturity than her his age. he moves pretty fast
had to withdraw from this pro- looks propose; and the “ sway ” with a gun-toting Vanya at his
There is some pretentious Action, but we are left at in her walk we hear about is heels.
1 Waffles." apparently verging
SS't"ou f e“ exhibition which •£*„**& &££
-audit is a good one-is to „ , tion by the Canadian John flat-chested under a light- °f se ^5\ “ * h 5»' “ggj
visit the exhibition. British SUIT1S UD hOW SrT^tteirbofks that were P”*™? 1 * »"« , C0 '?” red V ? E ' iS S °" ya 1° sf' Freser's t“ce shining « pink
flKSJS ifftfi! todav’s architect fiSJi*-
£ /eld. ArchS tOClay S aiXftlteCtS gE™*,** “g a good production on this fltan . voice « Mjj
<“£. D ^ ign - V PW the filtnrp imitation of classical bits and bi "* vprv mil|lh an ™ n VwheX she and Qm as o]d nurse * but ±eT * is
which has consistently cham- ViCW LflC lULuiC to** i G nnt«MMiPh— It is very much an evening scene where she and Elena . - . .
turaL Designs This magazine,
which has consistently cham-
pioned the avant garde and
pioneered a path for “post-
modern" architecture, earlier
imitation of classical bits and
pieces is not enough — architects
should -learn the rules.
□ ase. . UU1C UX uiaujjuuimimrju.. j-u uic .
It is very much an evening scene where she and Elena as ** ^ d S? accent hi her
for the veterans; apan from pledge their friendship, her ^wift Se «u«S
Donald Sinden's Vanya. Ronald face. no less' plain than the text ET£ f *L2f 016
SSr ^tiCturT earlier Technology imposes another Sheila tion in her words.
Sif^ar ££daS%iSte vapid decoration in the pedi- *5““ •&££ Gish and Frances de la Tour a smile of dazzling loveliness. Daphne Dare's scenes are all
to siStTiScM btSdlnS mcnr of the Northamptonshire S ke Norn ^. r I°f er ^ as Elen* and Sonya, we are At the end she makes her set on a square area with a
WteiVS summer house hXTi 3 Rogers, and Nicholas Gnmshaw amonE players who made their consoling, speech to Vanya comer upstage centre. The
sXlferiwe SmoreS is *«”*** and careful. SSjS^ in the ^enties cradling him in her arms, with first, with the outside of the
LBr**” rme ° f 5Si Of belief that its
British Architecture 1983 is
(ZTSsi sz s I - SSFSntA’HS.'EE £«“ ™ 8 r- t E£j &STi?%ES=
ardS ? ’ s a™ U l' 9 Erapres EuW£ has few“n« Hany Andrews i s Serebriakov, interior scene, the addition of
of Bratisn ArduteetB at 66, porting the budding. This is a s Maria bur she adds dit-nirv tall, immaculate, a vast monocle a table and a map of Africa
Portland Place, London W1 I like the. work of Terry one view of the future using ro the scene bv formine a^nart in his left eye as he announces turning it into Vanya's work-
until August 27. “Rie range of Farrell — and there is a chance the elements of tibe present- 0 f it * to his family his proposal to room. The translation is In
a^.iMle lie on uiJJa eh.v i. i- tn eao vmjw hi. A^.-kwiAitaJ V,!., „ - nr U1 ‘ Tl .1 S_ I __ a U..1 <r.
a welter of tragedy.
acts are all played in the same
Edward Fox
expectancy and rose of the fair . hmht»r Taor-tn* exhibits as so wade that it is not to see again his Arunbridge/ Richard Rogers offers a sinister To beein with thp stars of mir sell their home and their living fluent current English, but Mr
?«* “? a *£3*3 S toU h v 5 nS an easy task to assess the routes Vauxhall Cross entr>--but there looking mrtfie work station owi to hTwevS Ivan PeSi for his benefit. A * *» I Morrell should have avoided
J? t f? e< K Ual Jf « tee-shirred hiEhlv-contr ££££?«’ to the future but it seemed to Is a childishness about the known as a "Third generation vich is not the kind of part on*> felt some sympathy for this phrases like "in the final
Teddy boy. His friends, Rosen- several dear signs mongrel classicism of some of office" for Knoll O^poration. SSnltively £fociate? vd^h ^racier for once; “I'm more analysis" and “like Hell he
crantz and Grnlden stern them- W0 {^ u t bl JJf d h( J lave hA had „ °° emerged of the kind of build- his schemes.. The interesting Looking like an operation Donald Sinden^t^he can nrS repulsive to you." he says to does " (also “cottage cheese"!
selves, would, never dream of »> duct Self' in ings we can expect to see. project for breakfast tele- trofley, no doubt dazzhn^y effi- duce^a “snort " ftom time P to 1118 young wlfe ' pokins her which P UDCtu re the Ulusion that
addressing him without tiie to Pam. Tiifise m nQt m vision’s headquarters is both cient, it uses The language of Hme a<? h^did in An EiSu of a forefinger to ensure she will we are in the Russian provinces
proper courtesies. Dtxtokd ffth7rhL a ^ much from the actual schemes, dashing and bizarre. The main technology to a dgree Sit is S? Peoule^Ch make a denial For a man of in the 1890s, *
J _ _ * . . rmrAflifTaati 'T’U A
Russian provinces
played by Dan Madden, who at SSSSi»£^Th» Chir desd^e«. First of ali‘ there is giam suspended keystone'in the machfnWikrtoo^lose'to the iJS-fSli - ler^? when hi
« S L” eSf^idenee of a new centre ,of a skeletal arch, » cutting edge’ of the laser sur- SSt'cSaT
truly "the bloat king." He “gg » t0 Gemude’a ^wl&lgemenx of the past. « a kind of billboard, light- geon :
■Pf*j52.. £ ^ALfe 1 5Kft Many of tim schemes on display weight joke. An.
tSSw infai? d to & l^rt ^he Palmw would have avoided. S . obeisance to either It ts a good opportunity to seen in this exhibition are oniy^vhen familiar brisk
}5StS halfwav ttonh his leasta he has toming d / s ^ a - sm J or ^ I . th * see the elegant coloured draw- Denys Lasduns. designs for the tones showed under ^ muled
toSte sh« at reSan» ** doaet int0 a bedroom f tbeir c ^ m f iia *? “norntd- mgs of two projects thot : are Hurva Synagogue m Jerusalem voice that there came a sign of
SnP Audlev is STouSS’- K^ght is also good as ft* r Student schemes, too now building by Jim Stirling, -beautifully drawn. Ahrends, , he usual Sinden. It is a beauti-
WnfF and omsMken First Player, overplaying to “«*» * a awareness of His btaatsgalene in Stuttgart Burton and Koralek show their £ul performance that is at its
bluff ana omspoKen, exactly the ht ■ * history. The second main am- and the extension and Turner mtngumg engme works for the b Mt ! n 4^ sa ddest moments and
?Lv OI !S player Q^en (Robe A MorgIS) tod ® 18 a i fascination witt tedh- GalTep'. for the Tate are ,por- Cummins Company in Lanark- we must blame Mr Fettw and
IS “. ”®’ £ y J, 1 !! re-appears later as Fortinbras— noI °sy- Sometames this fascina- trayed in careful and contrived shire. Their scheme makes an not for missing Sere-
Sofi rif,r IS , S5l “SC !? 1 l r a " delicate and tender prince ” tion takes the form of nostalgia colour drawings that present interesting contrast to the bri a kov at such short range with
Polonous, who gives what I indeed. for the lost days of the mega- the schemes as art works. I great yellow umbrellas that his second shot
t £ ous £ t -j 1 ?f ra ^ st roundJy : Horatio (Terence Hillierj is a structure, and in other cases it cannot help feeling that the Norman Foster has designed for As Astro v, Ronald Pickup in
characterised performance of handsome young man not the is a raore ruthless view of Che reality' of the Tate extension the Renault factory. Colin St his smart brown suit and riding
tiie evening— funny to others professor of philosophy he has ***“«. will be infinitely less subtle in John Wilson’s design for the boots looks like a cavalry officer,
but serious to himself. latelv tonWoX , \ How is tins new floncem with its elevations than in these new British Iihrarv aloneside ana ha> ic ; n »i ■ n a /1 tn nnt tnn
rang eoge ox too wiser sur- firsl on stagei his puffy
? n ' , . , ^ face vague and unfocused. I
Among the classics to be hardly recognised him. It was
will be infinitely less subtle in John Wilson’s design for the boots looks like a cavalry officer.
but senous to himself. lately tended to become— a How 16 n* w concern with Its elevations than in these new British library, alongside and he is inclined to put too
Niki Kays Ophelia is a very more appropriate occupant for the P 3 ® 1 reflected in the build- drawings. Stirling is also jok- St Pancras is a curious design much of this element into his
proper gu-1, even when she Hamlet’s heart of hearts " The in S s for future? One way ing at the expense of the past —worth puzzling over or just playing. How could Sonya tell
chums to. be “ most affrighted." set. dominated by a centrai stair- is work of the revivalist while at the same time present- overwhelmed by the complexity him he has “such a ‘gentle
When she goes mad, she is just case leading to the upper stage, architect Quinlan Terry. He ing a new formal language,
mad , singing away without is a fine, practical design by believes the classical language What fails to be understood
giving much clue to her loss of Keith Grant
architect Quinlan Terry. He ing a new formal language. of its brief? voice," when he so ofen sounds
believes the classical language What fails to be understood Taken as a broad sweep of as if he were drilling recruits?
has never died. His summer by the architects of post- the current somewhat depressed He is a handsome figure all the
house for a dwelling in North- modernism is that classicism is building world this is an en- same, and his moustache is not
amptonshire and a birdcage, in already a language. It has its couraging and lively exhibition, nearly as absurd as he would
« T - , the form of the Salute Church rules and regulations and a It has taken a long time for have us think. His lecture to
oW3.Il Lak:e/he<;trval TTail ! n Ven (ce. are both exercises highly developed vocabulary, architects to dig deeper into Elena on Russian forestry is
/ *** •k-i-cm . in straight copying of the past. What is missing in the efforts to their boxes of building bricks, delivered as if to a student
• g%, . Why is it that I always feel utilise it. even by the most They still need to be braver gathering, but the following
bieineni onsp uncomfortable in the presence eminent, is that just picking and more daring, but there is scene, when he first makes love
of a Quinlan Terry building ? and choosing hits and pieces of a positive glow around this well 10 .her, is touching enough.
If Swan Lake were about a Queen in Act 9 or a devotion There is something not quite the language is reducing it to a selected exhibition that is Sheila Gish’s Elena was a bit
girl who could spin like a top to turning on her own axis in about them; his kind of absurd slang. A closer decidedly cheering. unromantic to me; she has a
then Galina Panova's appear- Act 3 which would make a der-
ance in. Festival Ballet's stag- '^h envious.
ing on Thursday might be t The performance, in sum. I
n--- SM !K
And if the Festival HaH stage 0 f brooding presence and
were more than a shelf amid exultant moments of dancing,
the concrete degradation of the though -hi® worried expression
South Bank, then the prodne- during the part of the Black
tion might look less like a quart Swan duet suggested that here
deep voice that she uses without
any great outward feeling, sug-
Lnonard Burt
Donald Sinden and Frances de la Tour.
Handel’s Hercules/Albert Hall
David Murray
crammed into a pint pot. was a %
But Sictui Lake, feven in Festi- thoughts
val’s hyper-active Gothic ver- teetotum,
sion, is a lyric tragedy, and its The co:
t>wan auet suggested that here Hercules only sounds as value, though sheer alertness there is more energy in her
was a pnnee having second though it ought to fill the made light — fairly literally — of music Chan was discovered here
The Dream/Covent Garden
Clement Crisp
Albert Hall, though in the title- the failing.
by Jennifer Smith. Lovely The visit by the ballet of the as Herrrua. Bernard Boucher re- with especial pleasure
role on Saturday John Tomlin- m t Tomlinson s less stentorian sound, often, but with softened Paris Opera ended on Saturday, peated his subtly-played and Maurice Ranchefs eager inno-
son did just that on his own colleagues completed a notable initial consonants and a sweetly Th e all-too-brief season has been subtly-timed Demetrius, but cence as Quince.)
account With probably the cast. The central part is not that frail line she came near to rtxiumoh for the dancers and a 01ivier Pale J. of the young A final impression of this
strongest bass-baritone in the of Hercules, in fact, but that of sounding mannered; as Winton . *h th '‘ ons ^toP^y, became a season has been of a company
country, he was natural casting, his jealous wifp Dpiinara. Sarah Dean enthusiastically main- rr v r , “P <>n t0 t “ ose eye ? new and splendid Lysander, bursting with talent. Perform*
Panova brings to the role is a many clothes on .view — and granted that be also has the Walker gave her an anxious tained in his programme note, that can see of a style and impetuous in dance, intense in ances have shown us something
prodigious determination to Matz Skoog is a brilliant technical ease and rhythmic di*nitv and had the volatile Handel supplied her with more toamingbotai elegant and bnl- feeling — what an Albrecht he now sadly lacking in the work
show off her pipdigious facility reminder of better things amid address for Handel’s bass- brilliance required for her near- psychological variety than that, TTwe could be no finer will make. of our local troupes: finesse in
terisation that gets in the way. pas de trois and the lunatic his expiration in fiery agonies her last 0, uilt-stricken visions); a ud 'ence was appreciative, but ful second cast in A
With him /were what the style; brilliance in endeavour
programme called “two assist- and attainment; temperament
ant gardeners," Laurent Hilaire that fires and brightens the
seems well suited to the divertissement that the pro- Still. Handel’s opera is not an command of this rich role’ must P* r «*P® was a general <fay afternoon. Monique Lou- brfef, clean-limbed variations shoes among the women of the
peasant charm of Swanilda; gramme thinks is "Napolitaine.” oratorio; its chorus is confined make a "reat impression and it ^Ptoion that Handel opera difcres. the beguilangly mvomc indicated yet more talent in company as the norm rather
what I consider miscasting as The rest of the national to sententious epilogues for -was strikin' 1 enough in the would be miniaturised in these Helena of earlier performances, polished, proud classic dancing, than the exception.
Odette/Odile does not, however dances look as if they could each scene, and its principal Albert H<til The modest ^toroundings. The polished became Hippolita/Titania, and So did the appearances of An " individual " approach' w
excuse abrupt line and, pet'- well be performed by the characters were designed to the dramatic function of the tenor Monteverdi Choir were a great showed yet again that speed. Fanny Gaida and Marie-CIaude dancing among French artists
functory feeling as the Swan peasantry of Las Vegas-
_ .• . f wi uidi lensuu mis excellent.
Canadian IS new Old Vic owner performance under John Eliot
Gardiner — put together in part tone"
Canadian millionaire Edwin bought it 20 years ago.- from the Gottingen Handel Fes- a
Mirvish has become the new He has 52,000 patrons at the tival He rentes this summer —
owner of the Old Vic, the his- moment and the annual season seemed a temperate affair, even
toric London, theatre. He now of seven shows — each of which allowing for its concert format:
plans a face-lift for it which will run for six weeks at the most — rewarding, certainly, but not
cost at least £lm and hopes to Pte regularly to between 85 dften stirring. It was never
start staging productions in and 90 per cent audiences. ponderous — Gardiner drew
_ _ "7 ^ — — ’ uioumm iuuluvu ism l i*
scale of the old King's Theatre role, Hercules’ son Hyllus, is nEip '
In the Haymarket, not to Prom- belied by the florid power of his
scaIe - _ , . music, realised here by Anthony
For that reason this excellent R 0 if e Johnson with his usual
performance under John Eliot stylish assurance and beauty of
handmaiden. Lichas,
NYO makes
Barbican debut
aplomb and grace which make Pietragaila, exquisite young has been historically a cause for
her so attractive an artist (and artists of the most impressive indiscipline in the work of the
have won her recent and well- promise. And Puck, who had corps de bailer — I can recall at
deserved nomination as dfoilej. seemed so ideally identified in bevy of swans at the Opera so
Francoise Legr6e took over the bravura of Patrick Dupond fragmented in accord as to be
the roile of Helena, with Jennifer and in his mocking sense of hardly in the same ballet with
Goub£ as a new Hermia. Both humour, found in Fabrice each other — but the general
tival Hercules this summer— dramatically more exiguous The National Youth Orchestra these lovely young dancers are Bourgeois a quieter but no less dances in La Sylphide and The
seemed a temperate affair, even ctm thouch for Mrs ’ Qbber of Great Britain, now in its typical of the new generation— buoyant interpreter, and one Dream showed an admirable
allowing for its concert format: Handel exoanded her nart 37th year, will round off its >n their early twenties— of with a ready sense of urchin unity. I am only sorry that the
rewarding, certainly, but not almost to the size of a one- 100th training course with two Op*ra ballerinas, with slender fun when the lovers’ intrigue full wealth of the Op6ra Ballet
dften stirring. It was never woman Chorus Caiherine major performances in London physique, beautiful placing, un- was at its most complicated. has not been seen in London.
dften stirring. It was
ponderous — Gardiner
September next year.
Mr Mirvish will act as his own lithe, stylish playing from
drew Denlev's olanseat mezzo was this month — including its debut forced but unafraid technique, M Bourgeois, the first cast
i the well * contrasted with Miss at the Barbican Centre. and sparkling feet (a quality Flute, was replaced by Patrick
Several Hoilcs were not on.
view — I regret . especially that
artistic director, but will not English Baroque Soloists, under- Walker's more flexible instru- On Saturday, August 21, the uniformly to be found in the Marty, a gleeful Thisbe in the the magnificent Jean Guizeriz
>< xtr_ - — j .1 s i u «« Dnfin) MHo TacptAb WJlc Pn- nlav ewavina r*n n/>int lit a n anrl tVi a nnol I r- Mannn Thibnn
BSO!*-
L ni^
THEATRES
ALBCRY, . Alr-rond.' S3€ IB78. CC 930
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Ot I VER COTTON. ELIZABETH
QUINN CHILDREN OF A LESSER GOD.
FLAY OF THE YEAR 5WET 1981.
ELIZABETH QUINN ACTRESS OF THE
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2S ONLY, gnrv Connolly * Patrick
Rvccarl in J. P. n«* comedy
BALTHAZAR. Complete Night Out Inc.
dinner at Laguna 50 Restaurant qpp.
Theatre at £8.95. 835 0950.
GLOBE THEATRE. 01-437 1592. CC
Hotline 9M 9232. Grp sales 379 SMU
Evas Mon-Fri 8-0. Weds mt 3.0. Sag
a.O & ■ 6.30. MARIA AITKEN, IAN
OGILVY. GARY BOND in Noel. Coward's
DESIGN TOR LIVING ROtANB
curam. Directed bv Alan Simehan.
HER MAJESTY- 1 . 01-930 6806-7. Credit
Card Hotlwe* 93a 9232 A 930 4025-6.
Group sales 379 EOBl. EVCJ 7.30. Sat
mat 3.0. THE NATIONAL THEATRE'S
MULTI - . AWARD WINNING INTER
NATIONAL SMASH HIT FRANK
FINLAY In AMADEUS bv PETER
SHAFFER directed bv PETER HALL with
N Ideal ax Grace. MUST END OCT. 2.
KINGS HEAD. 226 1916. Dnr 7. Show
a.O. MARIKA'S CAFE THEATRE.
01-437 7373.
n the Broadway
7.30. Mat Wed
Sarnum Hotlines
;961 lor Instant
NOW BOOKING
LYRIC HAMMERSMITH. 5 CC 01-741
2311. 01 -200 0200(24 hrsi Ton't 7.30.
Tomor 7 pm. SutM Evgi 7.30. Thur Mat
2.30. Sat Mat 4.30 SHE STOOPS TO
CONQUER Oliver Geldimlth'i eemedv.
Directed by William GasJtlll.
LYRIC THEATRE, Shaftesbury A»e. Box
Office 437 3686. Tel. Credit card
bit (re accepted. GLENDA JACKSON,
GEORGINA HALE m SUMMIT CON-
FERENCE. A now play bv Robert David
MacDonald. Ewt 8.0. Mats Wed 3.0.
Sits 5.0-
MAY FAIR. S CC 629 3035. Mon-Thun
8.00. Fn and Sat 5 6 8.30. Richard
TOdd. Dcrren Nesblt, Carole Mowlam In
THE BUSINE5S OF MURDER. SECOND
GREAT YEAR.
NATIONAL THEATRE. S. 928 2252.
OLIVIER foMfl stag*) Tpn't T.15 GUYS
and DOLLS. Tomor 7.1 5 danton-s
LYT'tel'ton (proscenium stagei From
Thur 7.45 (low price prevn WAY
U PSTR EAM bv Aycfcbourn.
COTTBSLOB (smalt auditorium — low
ffi? ^C^N^lT^LE^v
Brecht Tomor 7.30 THE BEGGAR'S
OPERA fleet 2 penis Aug IX 14 at
7,30 THE PRINCE OF HOMBURG). Ton 1 1
6.00 Haven a new comedy bv Alan
Drury. 45 mini Platform Peer all tkti
element cheap seats day of part all 3
theatres. Summer itandbv from 10 am
dav of pnrl. Car park. Rntaw-anr 828
CHICHItTBR WBW» AL TH EATRE. 02*3
OPEN AIR REGENT‘5 PARK. S. 466 2*31
Instant credit card hooking- 930 923^.
» RK LADY OF THE SONNETS Jr THE
MIRABLE BA5HVILLE lenlght .S«
B.oo Mat Sat 2.30 A MIDSUMMER
NIGHT'S DREAM Tue A Wed 7.45 Mat
Wed 2.30 THE TAMING OF THE
SHREW Thur A Frl 7.45 Mat Thur 2.30
PALACE. CC. 01-477 6834. CC Hotline
4317 6327. Andrew Llpvd-Webber't SONG
AND DANCE Starrmp Marrr Webb A
Wayne Sleep. Due ro overwhelming
demand now bonking ro Jan. 1983.
Eves. 8.0. Fit & Sat 5.*£ & 8.30. Some
apod seats Rill available most perfs-
Group sales 437 6834. 379 6061.
FROM AUG. 16 SPECIAL GUEST STAR
FOR ONE MONTH ONLY. GEMMA
CRAVEN. Marti Webb returns from
holiday Sept 13th.
PICCADILLY. S. Alr-cond. 437 4508. CC
379 6563. Group sales 01-835 3962-
£79 6061. Mon-Fri 7.30. Mats Wed 3.0.
Sat 5.30 & 8.15. Students £350. ROYAL
SHAKESPEARE COMPANY in Willy Bus-
sell's new comedv EDUCATING RITA
R5C also at Aldwvch-Barbican
PRINCE EDWARD. Tim Rice and Andrew
Llovd-wcbberi evita. Dir bv Hal
Prince. Evgs 8.0. Low price mats
Thur & Sat 3.0. Evgs ports end 10.15.
Box Office 437 6877. CC Hotline 439
■499. Grp sales 379 6051 o' 8-0 insr.
24-nr bkgi TeJedtta 01-200 0200.
PRINCE OF WALES THEATRE. 930
8661. CC HJtllne 930 0846 or Tcledara
01-200 0200 (24-hr big*} group sales
91-379 6061. or bookings on entry. ROY
HUDD. CHRISTOPHER TIMOTHY In
UNDERNEATH THE ARCHES. The inush
hit Family Mujlcal Mon-Thurj 7.30. fri
& Sat 5.1*5 t, fl.JO. SPECIAL RATE £4
ANY TICKET. chHdren. OaPi. students.
Mon-Thur & Fn 5.15.
QUEEN’S. S. CC 01-734 1166- 439 3649-
4031. Credit card. 01-030 9232 Group
sales 01-579 5081. Evenings 8.00. Mat
WM3.M. Sat. 530 1 . 8.30. ANOTHER
COUNTRY bv Julian Mitchell.
RAYMOND REVUE BAR. CC 91-734 1593
Mon-Sat nightly 7om. 9pm. 11pm. PAUL
RAYM OND presents THE FESTIVAL OF
EROTICA. Special concession to members
of HM Armed Forces. Admission Cl .00
ta »«Y 7 pm pert. Z 5 th sensational -tear.
ROUND HDIIK. 267 2564. OXFORD
PLAYHOUSE* CO. m THE CHERRY
ORCHARD. Dir, bv Mike Alfreds. Open*
Ton t 7.0. Sub Evas 8.0.
ROYAL FESTIVAL HALL-01 -128 319T.
CC 01-928 6544-5. LONDON FESTIVAL
BALLET. Ton't to Fri Evas 7.30. Sat
3.00 A 7.30. La Sylph Ld« Won't Evdokl
muval Scha uFiresl Larten.1.
ROYAL .COURT. 5 CC 730 174S Ust
week. Evpi 8.0. Mat Set 4 0. Tan't *
Mat Sat. All seats C2. INSIGNIFICANCE
by Terry JphpMn.
ROYAL COURT THEATRE UPSTAIRS, 730
2554. SALONIKA by LOUlSC PM4-
Evga “JO.
SADLER'S WELLS THEATRE. I Cl - Tel.
01-278 but 6 (5 lines) for prognmme
aratla. SUMMER ARTS at Sadler's Wells
London's Festival o! Community 4. Ethnic
Arts. Aug 15 to 26. Free daytime events
In and aroond the theatre. Different even-
ing programme every night. AH eeets
Cl. 00.
AMPLE FREE PARKING after 5.30 pm.
SAVOY. 5. 01-636 8868. CC. 930 9232.
Evenings 7.45. Mats Wed 2.30. Sat
S-a. 8.30. MICHAEL FRAYN'S NEW
COMEDY NOISES OFF. Directed bv
MICHAEL BLAKEMORE.
ST. MARTIN'S. CC B36 1446. tv« 8.
Tues Mat 2-45. Saturdays 5 & 8.
AMUia Christie’* TUI MOUSETRAP.
World's longest. ever run. 30ttl Year.
Fully alr-conditlbncd theatre.
VAUDEVILLE . CC 91-836 9988. Evm 8.
MOIRA LISTER. PATRICK CARGILL,
BARBARA MURRAY. GLYH I HOUSTON
KEY FOR TWO. A new comedy by John
Chapman A Dave Freeman. Previews
Sept 6*7. Opens Sept 8-
YAUDEVILLE- CC 91-836 9988. Eves 8.
Wed mats 2-45. Sits 5 * 8. GORDON 1
JACKSON I" AGATHA CTRIBTie-S
CARDS ON THE TABLE. Folly alr-
egaditiened thaetre. NINE MONTH RUN
ENDS SEPT. 4.
VICTORIA PALACE. CC 01-834 1317-6.
01-828 473S-6- Grffua sales 379 GD61.
DENIS WATERMAN. ANTON RODGERS.
The New Musical WINDY CITY. Bated
on the play The FW1 P*D*. Directed by
Peter Wood. Ews 7.30. Mat Wed * Sat
3 pm. Credit eard Hotline 030 9232.
WHITEHALL- 639 6 97 5- 697 6 and,. 830
6691^768- ROBERT POWELL u PhliNp
Marlowe. LEI MONTAGUE as Raymond
Chandler In PRIVATE DICK win,. Ronnie
Lechim end Elisabeth Richardson. Tickets
AS. £4. £5. £6. £7. SB. Students S-bv
£2.59- Mon-Thur 8 wi. Fri A Sat 6.18
em and 8-4S pm.
WYN CHAM'S 5. Alr-cond. 836 3028. CC
379 5565. GPP reducHbrj 8 SB 3962.
Mon to Sat 8.00. ROBYN ARCHER in
A STAR IB TORN.
YOUNG VIC (Wetarle*!. *2-8 6383. (*w
7, SO- Sat Mat 2.30. SDWARD FOX in
HAMLET. All aeat* £2.30.
F.T. CROSSWORD
PUZZLE No. 4,944
ACROSS
1 To hush an upset baby is
rather mean (6}
4 End part of a newspaper
strike (8)
9 An impressive time of the
year? (6)
10 An increase we'll make a
song about (S)
12 Complaint of untidiness (8)
13 She was exposed as an
opponent of oppressive taxes
(6)
15 A double round to celebrate
(4)
16 Bali made square possibly
( 10 )
19 Loaf around for a while 7
(5,5)
20 Go by a mountain road (4)
23 Pass the rum please (6)
25 Regarded as having taken no
active part (6, 2)
27 The security of a good riding
habit (4-4)
28 Painful experience that is
soon over (6)
29 Told off (8)
30 A game one may come across
( 6 )
DOWN
1 It can break rising young
men (7)
2 Put in a drink it could give
a sour tang (9)
3 A bar across the Channel
(6)
5 Urban area to the West and
North (4)
6 Worn after rowing ? (8)
7 This excuse is out of place
(5)
8 Avenger about to give chase
(?)
11 Rips are put iu order by
mending (7)
14 It provides no latitude for
the navigator (7)
17 Deserted, being completely*
irresponsible (9)
18 Feel bias in practicable form
(8)
19 Apparently boards another’s
child (7)
21 It's true I win appear in the
screen version (7)
22 Joint holder (6)
24 A left arm which' may be
. raised (5)
26 Desert one’s post, though
left in charge ? (4)
The solution to last Satur-
day's prize p uzzde will be
published with names of
winners next Saturday.
- 5L 1 Giovanni Spadollnl, the Repub- Italian Sections change noth- “jJJSSi
*>«* - licra Prime Minister, was, by ins. Even if. ss now seems tlobs mv olve^ tmd
F.T. <
FT - 1
F.T. i
~ gar di
Bfbby
Blue .
Berth
~ Brady
. Broth
Culler
H°° V(
' Intere
Notfa'r
Phoen
Rank
- Rcardi
Reed
Standa
Tumei
Wagor
I SA1
day. d
tralian
side w
about i
sold c
Wester
e.-irlia
the oth
beartlf
Tjolirici
jt up."
Sure
Labor
to new
in vest o
to pc we
ins of .
The .
by the I
Govern!
big .lat
in the
Pancont
and Gel
They*-
week,
claimed
tial rep.
the No:
partmen
suggeste
Jabiluka
prospect
potent ia
has been
tic to 5a
It was
Austral k
uranium
priced a I
pound i
prices ar
this in .
like renu
{years to
| Jabiiul
(tracts at
the part
arrange s
of Goven
mining p
not meat
jvas unat
in the sl
M r Tot
’anconfir .
irfsingiy.
-omments
le maint
abiluka's
orniing ■
i a posit
?curity
xategic i
While
ibiluka *
tie ro a
ng-term
ight be
w dolla
sure &
an scrat
"ers in
trfceh
Signifies
itinenta
tch of
Europ
intries i
ncvifabl
,P.0S5jt
FINAJNCIALTIMES
BRACKEN HOUSE,: CANNON STREET. LONDON EC4P 48 Y
Telegrams: Flnantrmo, London PS4.Tetex: 8854871
Telephone: 01-248 8000 *
Monday August 9 1982
Quentin Peel, Africa Editor, reports on the problems of using Western aid in the Sahel
• *&r:3
O NLY a mile or so beyond
the brilliant gTeen rice
paddies of the Naman-
goungou irrigation scheme on
_ the banks of the Niger river
stand tt>e remains of a similar
project: crumbled dikes, choked
_ ditches and abandoned fields.
— ■— 1 Namarigoungou is a testa-
ment to the huge aid effort
-w- . -m ■ -m being put into one of tiie world's
I 4=rti IvT -mm poorest areas: the Sahel region
I TCI IT/ W on the southern fringes of the
fl Lu.1 Y I I V/V/U.LJ Sahara. Some $25m are being
_ 1/ spent by the World Bank and
West Germany’s Kreditanstalt
"M j # fur Wiederaufbau to irrigate
/\ | r\ 1,500 hectares of normally dusty
wr I | |fl ■ 1 1 river valley, and make a major
%'JL^LFAJLk7 contribution to the struggle for
food self-sufficiency in Niger.
EARLY AUGUST is usually may have been in part victim of “J*??*
when Italian governments are the jealousies his popularity had jt stands wriness tothedaim^
.. formed, not when they col- created. But in concrete terms. problems feced by j ud
‘ lapse. This year it is different, and as leader of a party with d( ”J®re •"[j
The fall of the country’s first just 3 per cent of the national meats realising the
' administration since 1945 not to vote, he has been the prisoner wwCv intentions of the aid
r. be led by a member of the tf political reality, and nowhere ^ orL . ^
Christian Democrat Party has more so than in the economic Jon ° f *5®'
brought the politicians rushing field.
‘ back to Rome to spend the tra- His Government’s fall has * e ^here^ poverty ^so
ditional holiday month attempt- punched a huge hole in the ,ajj£ n ’ hu ?7 n ^ ^ J?
ing to find a solution to what ambitious stabilisation package but
. promises to be one of the approved just a week ago- The
f trickiest crisis in a long while, desperately needed re-ordering ^ *£2?^
• Quite possibly this time their 2JM3," M
extraordinary dexterity in de- £tu£tiT?new eovISment and also the strategy
. vising new formulae will fail j formed, and wnceivably^to bein g adopted by Western ageiir
. them, and General Elections in ^ s j de of MW election des Kke the World Banfc
October or November will prove . d m wav ln W hich attempting to improve the cort-
to be the only way out The SodalS effectiveness, and the rate of
■ basic problem is the familiar £f d e r *£? Sd the o|Sk return, of tbeir programmes,
one: how do you find a ctmipro- On the one hand- nguor
mise between Christian Demo- tion ar g w h a t he— if don® 1 " 3 llke the World Bank
crats and Socialists, those no one else in public— is aiming argue that, inappropriate domes-
f re res ennemis of Italian poll- j Q an „ case it ^ j 2an ] to see tic policies are undermizung
tics, open rivals, yet con- th - socialists’ now meekly *» d spending, especially on
demned to work together if any aC Q U j M cine io a new administra- agricultural production. The
parliamentary majority exclud- tiorii l0 ^ intents and purposes Bank’s major report test year
ing the Communists is to be differing little from the last. Accelerated Development in
- formed? Sub-Saharan Africa, the so-
Surgery
provoke the downfall of Sig Notoriously. of course,
The impact
of strong
medicine on
the fragile
"V ■
' ¥ .• • .9
. 4: ... uv
W.'VX&r '- ‘My- ^
■ ■ •
1 : ^ -'3L
S '. . . :
':U*' S i- f
1 04 .
• 7
• . « •* aw
A.
■■ff %. *
• Ikt Vi.'
? ' /
• v ’
W-J- ;:tx A
V _
I '■ - *1
1 3^.*^
fw '
. • -.V- i §
*r\-
r-' .
formed?
The upset vote which the Sureerv
Socialists have seized upon to ®
provoke the downfall of Sig
fbnry
Notoriously,
Graham Lauar
World Bank irrigation programme in Tayende, Upper Volta.
the same isiTOSsowIticaiig mow
. projects dtrectfld V at baA-
health and education. The -
skilled manpower shortage ft -
the Sahel 1 stems' from a literacy
rate of under 10 per cent, cant:
pounded by only .+ v third of.
children attending prima r y -
school.
USAro is trying to oonwntrate -
on projects with little or uq
recurrent costs, such. as . trac-
ing personnel in„skihs of man- -
agement and. accountancy. Aid
officials in Upper Volta sadly
quote rural .. development
schemes which failed because -
no. one, could, afford io pay. ih*. ’
agricultural extension workers,
.or a school programme, abaa-
doned because they could- not
afford to pay the teachers.
There is a growing «£ogni-
tion that the most successful aid. . ;
projects are the most modest:
the village .. water-supply
schemes designed by non-gov-
eramear agene'es like Oxfam, -
or the construction of . saaH ■
grain stores for farmers. More-
over, the active involvement of
the local -community in design-
ing and planning such facilities
is criticaL
However, it is the . World
Bank’s growing insistence on
"conditionality” — on -domestic
policy reform in exchange for
aid — that is most . contentious.
Bank officials are already resen-
ted for flying in from Washing-
ton on periodic inspections,
which involve the finest detail
—such as the number of vehicles
permitted to have air condition- '
ing. They are also, accused of
insisting on the employment of
too many expensive expatriates.
The Berg report was sharply
criticised for laying too much. /;.,
blame on policy mistakes — such
as overvalued exchange rates—
and too . little on the inade-
quacies of the international
economic order, and gyrating
commodity prices.
As a result. Bank officials
Ucan Prime Minister, was, by ing. Even it, eg now seems — — ■ — — ■■ ■■■■.■■■■■» — have tended to play down its
the standards of rows which probable, the Socialists, the Snafratesw kevftStos^ to importance— at least for reasons
have dotted his 13-month period Republicans ^ and the other agricultural ill-designed aid projects. One up the Permanent Inter-State these economies,” according to to assess the schemes being of tact. Indeed, no lasting
of office, a minor affair. Yet it small Parties of the d eve i oonM!n t on contineiK. > s the widespread planting of Committee for the Fight one aid director in Ouagadou- proposed in any rigorous way. debate appears to have been
has been the classic straw which centre were to make gains, me African critics retort that the eucalyptus trees as part of the against Drought In the Sahel gou, capital of Upper Volta. There is an inevitable tendency initiated with African govern-
broke the camel s back. Christian Democrats would still Ues gs mucll ^ huge effort at reafforestation (known by its French acronym " The digestive system is not to believe and act upon the ments.
The digestive system is not to believe and act upon the ments.
Esteem
In the past few months the
remain the l argest party and Wegtern ( j onors - .q^ m. to stop the advance of the CILSS) have simply not been as strong as the medicine we advice of the last aid mission
designed projects rely too desert In sjnte of widespread able to absorb ^ the aid flows are giving iL There is a veqr to pass through.
heavily on imported technology Peasant resistance to the trees, which resulted from a sudden limited absorptive capacity, and
However, a number of govern-
ments are quietly doing what
But are elections now a 1®® I an( j equipment, put excessive planting still continues. "It has and belated upsurge in inter- ability to maintain projects.
Intere ' energetic Premier has worked desirable alternative than yet emphasis on cash crops for ex- he™ M economic disaster,” national awareness after the "The donors are partly to tain watfrin them the seeds of tions, and decontrolling pric«
jq--r miracles to hold Iris five^arty another fragile government, lr and ^ Adequate ®tten- according to one forestry 1970s drought. blame for jumping in with Jess disaster. Donors have tradi- of agricultural produce— as in
— - coalition together. In the anything more ! conditioned still ti(m to the ina biiity of worker. "It needs cultivating. CILSS and its donor counter- than Ideally-conceived projects, tionally provided the finance Mali.NigerandUpperVoIta.lt
limited absorptive capacity, and However, the aid projects Berg suggests, especially in dis-
ability to maintain projects. themselves have tended to con- mantling their public corpora-
"The donors are partly to tain wtftMa them the seeds of tions, and decontrolling price*
blame for jumping in with less disaster. Donors have tradi- of agricultural produce — as in
, _ “ , v- UUU IU UIC luauiiiLV Vt _ " Z — UUU 110 UUUIM WUlUVA' r uwuftllj H>VVIUCU uihiowv
process he has woo much public than its predecessor oy the impoverished governsnents to ^ needs water. It needs all the part, the Paris-based bahel As a result, they find them- for the capital cost of projects,
esteem— and rightly so. His awareness of impending elec- fflislw ; n rhp nmninp management skills that these club, agree that food self- selves nicking up large shares in some eases, thev have
"ank -» esteem and ngauy so. awarenws or manning suimin the nnrnlng costs in the management skills ;
SSL future, they argue people have not got.
roads against terrorism, and Sig spring 1984) ^ and thus psycho- a hSund in the Sahel
sufficiency
the of local costs.”
for the capital cost of projects, is a real political risk, for they
In some cases, they have undoubtedly lay themselves
undoubtedly also favoured rela- open to the threat of a hack-
capital-intensive highest priority for the aid _ The proliferation of donors tively capital intensive projects lash from hitherto pampered
o, , .j . - ' j “ i _- | .1 LK\aiupin diAiuuu m me omiti utpiuu - immune puuiu.v m ■ uic aiu • r* uva/ vapiuu iulcumvc pi vjclio uuu uuiu uruiti iu punij/uiu
Spadolmi nas \ to Jogicawy even less weu t0 uimtrate the justice of both irrigation schemes, they have effort. Between 1974 and 1980, is also immediately apparent to which might involve the import urban populations, and
if equipped^ to^ ernbarK^ upon rne cases Mali. Niger and brought with them a host of S6.8bn of externa] assistance any visitor to a capital like of plant and machinery from especially the bureaucrats them-
cMohtiv U T?°^«!« r ,«^r e ^P r ,»^l h 9 1Ch the Upper Volta, centralised citip unexpected drawbacks. The was committed to the region. Ouagadougou: the streets are the donor country. But they selves.
r?JL unaer nun augnwy states finances require. purchasing at controlled prices farmers of Mopti maintain that it is still flowing in at a rate littered with the name plates have expected the host govern- The truth is that the Berg
Even by Italian standards, the has become something of a their production has slumped of some $ 1. 5bn a year, or more of international agencies, ment to pay for the running report on Africa is only one
ftttmg tnat almost ine lasi aeea previous General Election of faxce: an estimated 90 per cent from 50 bags a hectare to only than 540 per head of popula- According to one estimate, costs. part of the answer. Western
f u: Piwiommont urae ^ ~ ~ , J.OJ.VC. dll caujunicu jiri v&ui uiau ijrrv vi pupma- - — c, — i*vau.
itaniSL LwJn June 1979 provided a partial- of farmers' crops simply bypass 15 in. eight years because of tion. Yet of the eight members there were 340 separate aid - New projects generate verv
So d Sle B fSr kriy incondus.ve re^dt. to controlled system, and sell infestation by wild rice and of CILSS. only Niger has come missions to Upper Volta last heavy re^nt budget costs. Their aid strategies, and learn
5Sret watSw SnSdal ^scandll ?' ‘J on ^ black market - l ^ e low resistance of imported near being .able to feed itself, year which ^ raeti so to be much more seD titive to
tioofan teelmre t0I ? ed Ita Jy. a There is Httle doubt either, nee seed to Irregular and and that was only for a year The Sahel governments, des- the project deteriorates,” local conditions. The davs of the
nfm^oraSire sU^tehfn^nS ” ew T about the inbuiJlt bias in mMt inadvertent flooding. in 1980. peratety short of skilled per- according to Anne d e Lattre, onWffprojecS axe ?welv past.
affair ? een , heW - T . h .f argument is 0 f Sahel nations in favour The dilemma for aid donors “ I don t think anyone really sonnel. can hardly hope to directorof the Sahel Club in and now donors must be pre-
of urban areas and agai«m rural is that irrigation schemes understood the fragility of coordinate such an influx, or Parte. "Phase 2 and Phase 3
«ts. part of the answer. Western
“ New projects generate very dono'rs also have to rethink
worst post-war financial scandal, torted democracy than Italy, a
vicihlA tin nf an irph*>-n» ‘ . 77 — . “ ' tnere is rune uuuuu euner,
KSSriES new one would long since have abou t the Inbuilt bias in most inadvertent flooding.
, heen , held - argument is of ^ Sahel nations in favour The dilemma for aid donors
year< - which cannot be met, and so
The Sahel governments, des- the project deteriorates,"
peratety short of skilled per- according to Anne de Lattre,
development. The food aid appear to be the only obvious
which flooded into the region in way to a rapid Increase in food
— - - - - //BlkiU IV »r»il amr
of the project then have to be much -less ambitious, but' longer-
The style of government, if up, would be in a better posi- the wake of the disastrous production: dry land projects,
not its substance, at least has tion to act, and not just on the drought of the early 1970s and livestock projects, have
changed. Sig Spadoliiu, indeed, economy. remained very largely in the had very limited success, prob-
urban areas, where town- ably because there is very little
dwellers learned to prefer that Western aid can teach to
• __ imported wheat and rice to farmers used to operating in
■ I AVI 'M T1 flV\ traditional crops like millet and such barren conditions. But
\. ^ 11 IT T 1 1 1 1|^^ sorghum. irrigation schemes are often
MT O ST A stark example of the bias hugely expensive: Namari'gouri-
AGRICULTURE IN THE SAHEL
rehabilitation, not expansion.
“Since 1976 there has been
lasting programmes.
There has been too much
Opening up
the Budget
at Mopti, where a survey of are excluded,
plot-holders brought into .the ' Although irrigation
power and secrecy denies it to alongside rne Treasury's best servants
others, it is perhaps surprising estimates for revenue and the Tbere are also examples of
that Mrs ' Thatcher's Govern- borrowing requirement on the .
ment should have reacted in baste of an indexed but othei^
such a rapid and positive way wise unchanged tax system,
to demands that its Budget This information, together
policy-making should be opened with ready reckoners for the
up to public scrutiny. effects on revenue of specific
The Government has not a ^ hn ^
gone all the way with the P 016 ai J. „ author! ta-
iwnmmpnd.it inns of the all- tlve *Mt-youreelf kit for
mu-tv Treasury and Civil any™* who wishes to construct
S^rice committee of W» for ^ Thev^Uo prov?®^ Whisky appeals
t^WlfS'JSaS to Gulliver
irss 'j&nsssrj;
chronic aid indigestion.
Tbere are also examples of eight countries* which make
Average annual percentage growth rate JV69-T1 to 1977-7?
Volume of production
Food Non-food
Production per capita
Food Non-food
Chad
1J>
ZO
— 13
0l0
Mali
1.0
W
- 13
73
Upper Volta
Zfl
73
0.4
53
Gambia
Oil
—
“ 2.9
—
Niger
13
- 73
— 13
—103
Mauritania
— 13
—
— AJ0
—
Senegal
13
113
- 13
8.7
Source: World Bank
a 35 per cent increase in real emphasis on new investment,
aid flows. But there is actually ant j too Httle on maintenance.
■7i to vrn-n massive disinvestment taking More help is needed to tackle
Production per capita bec ^ s f. °* tbose reha,bl " the constraints of human re-
ood Non-food os ^' „ , - „ . , sources, by investing in basic
Th® World Bank, followed by health and education, although
7.0 on othe r Western donors like results may take many years
, . _ _ USAID, is altering its strategy to ghow.
* ^ in two ways: by changing the ^ tj, e words of one
o- 4 cho ice of its projects and by donor: “Unless we can chan ge
2.9 — nusisteng on much tougher our ■ways, the Sahel in 20 years
li — ^ 10.6 domestic policy conditions, in may not be very different from
lme with the recommendations w jjat it is today.”
Of tire Berg report. • Six countries initially joined tha
7.6 8.7 In the first place ilt is placing CILSS: Chad. Mali. Niger, Mauritania.
a miii*fi Mcchf-r Tii-inri.tv nn Senegal and Upper Volta. Two other*
Source: World Bank * P ° * have since joined: The Gambia and
- mamtenance schemes, while at cape Verde.
Men & Matters
than fund-raising might be the A
real GuHiver target when next and
he moves; wea
At the end of the day Slater Murray, the GLC’s chief
d Laurence Pathy, the economic adviser, complains
ttecommittee last week, do £ken up Sence^ Samuel in h shippin ‘
represent a genuine and wel- J n f orma *: ve Montagu's banking offices in Old Shipping finance is one of those who want
come advance. The ball will ^njormauve Broad Street.- But he has been specialist areas wfaere only the banking,
now be in the committee’s This should, in particular, wearing quite a track while h^yest of bankers dare swan old Slater,
court to make good use of the enable the Treasury committee journeying up - and down the “Uringthe current slump in the
extra information which the to start from more solid ground fifth floor corporate finance fpdustry. ■ — ■ —
Treasury has promised to when it questions Treasury department’s green woven car- So when Paul Slater, one of SGlf-lll
publish each autumn. witnesses after the autmn state- pets this year. the City’s more entrepreneurial-
he moves; wealthy and secretive presi- that "they are unlikely to
dent of Fednav appear to have dream about how they, with
— . fa Hen out. “He was a ship- others, would spend public
.__j* puig man who wanted to stay money.”
I reauing waier in shipping and I am a banker Showing a fine spirit of belp-
publish each autumn.
Montagu’s banking offices in Old Shipping finance is one of those who wants to diversify into fulness in the cause of free
Broad StreeLBut he has been specialist areas where only the banking," explains the 38-year- spending Mr Murray suggests
wearing quite a track while bravest of bankers dare swim old Slater. how it might be done in a new
journeying up and down the duras the current slump in the report on how to get more
fifth floor corporate finance industry. - in J voI ^ I1 J ent J in \
department’s green woven car- So when Paul Slater, one of Sfilf-lnflictpd ^ dustnal ““ employ- 1
nets thiK.vear. the City’s more entrepreneurial- imiioicu ment strategy. I
Budget
elaborate ™rt^ of Budget itoli'cfiSMi JEL 1 * eXpl ° re 0,6 baDk * S ^t^T^SS
secrecy. Although MPs could In wiU only be successful, how- _T with a field day. ■ “ graadng on the Knees "
theory reject a Budget, they ever, if members spend less He ats m has now accustomed T+ „ natientwiUhan eve innir-
have had in practice less chance time attempting to score debat- «*“»■ “ conference room niun- ^ ^eems that his departure w doctor
to alter it than in many other jpg points aSst offidate and ^ In *o"t to ‘a. has ■ boardroom see ^ dootor
countries and hardly any direct more on a serious endeavour ^de writing document. In hi& row abort the future direction unfortunate.! ata ,
influence over its formulation, to elicit facts and opinions vockei tea promise of Samuel J ^Kroup — which has L«
countries and hardly any direct more on s
influence over its formulation, to elicit ;
Although the new procedures from them.
Baltic Exchange and the City’s weekly, include a Gloucester-
banking parlours are provided share fanner complaining of fi] ^ ^
with a field day- ■ “grazing on. the kSees " ^d a 5^ JSSS2u ai 52;Sf'^SS
It seems that his departure ^ee n her until Projects^ which could^ be
has resulted from a boardroom £?“*** not see ■ doetor udW encouraged to create this
row abort the future direction 1 ^ sday - _ inspiration." Liaison with the
of the group — which, has ar f Arts Committee is. also
ID VI 1/1 1 /UU^C \JL ijdliiUCl — n- •• “J" «■ ■ ■ > — . t _ ■ « __ ■ 1 .i
Montagu’s financial backing. On financed over lm dwt of ship- L^J^ tiflT , c 5 lck / n suggested.
n inhvviif wAi«i a nnnitAni Anf Di Off — rath P.r than ahnnt ^hirv- aCSWPaUOTl. A W0TH3II COm- »pk« £,
will fail to satisfy those who The reverse of tins coin is a jotting pad near a convenient P abou * ^ S'ted first public spending
want a substantial shift of that the Treasury must supple- telephone is a tally of the latest loans that have turned J. ^ J. n L under scheme is a corn-
power to Parliament, they will ment the measures already su b - underwriting campaign, sour. S siE? from hXrh? paratively modest £38.000
certainly please those who announced with further Ja f°es Gulfeiver Associates is a . Last December Slater, who * wSir agreed last month for. a pilot
believe the objective should be attempts to make information raldi “B on the move. used to run Grindlay Brandt's tired d nptn to ctnr\ Wtott to prepare workplace
a wider and more informed pre- as accessible and as helpful as This week Gulliver starts shipping finance team, hired t-wZ* s " 1 and community groups for the
Budget debate on the govern- possible. One obvious need is detailing the move which will Morgan Grenfell, the City «... tn 7,™™- W 1 * 1, inrotoment to come.
ment’s fiscal and monetary for the public spending White take his Amalgamated Distilled merchant bank, to advise on f H ? th IJJ U T^F}, : —
strategies. Paper estimates to be presented Products group into the high- how t0 restructure the group gMuritv otie
n . •„ in some form of constant prices ranking number seven slot in ?? d cater for its expansion. w f vL the s a „ ««:
Discussion as well as In cash terms, so that the United States boiirhon Morgan Grenfell suggested Wm* .tnat^rne^patiopte are mi
and community groups for the
popular Involvement to come.
Next steps include the setting
Paper estimates to be presented Products group into the high- how t0 restructure the group SMuritv one t^Ti* <- of an economic literacy pro-
in some form of constant prices ranking number seven slot in ?? d cater for its expansion. v a;L arp ffjj' gramme and a newsletter "to
9c unit or In meh tannr -n th-t ,h A o..,.. , i MnrPAIT al 1 oiaaaet&J I>OW Ul« TJ1B are Illi ana*,, muhih : J.
as well as In cash terms, so that the United States bourbon Morgan Grenfell suggested
ita iSStw “taS « a S- "t? .ww in
The traditional argument for meaningful comparisons whisky market diversifying the group’s depen- ^ to _. a<? th __ creating an industrial strategy
secrecy about impending tax between years can be made. It all seems just like old denc ? on shipping finance, doctors ' for Lcnd0D '" Curious: no one
changes was that any advance ft is also to be hoped that the times. For earlier this year turning it- into a proper bank,
discussion would enable people maximum use will be made of Gulliver and his advisers were ? nd Bringing in new share-
to take avoiding action by, for exposure drafts for prior dis- outlining the stratagem which bolder3;
has suggested free beer yet
example, stocking up with cussion
structural
tax led to control of Sir James This was muisic to Slater’s ROOI" .SpGHClGrS u n [|.
orv Goldsmith's Allied SunnKprs ears. He went about findinv a FICHU OallOr
cigarettes and whisky. This changes and that satisfactory Goldsmith's Allied SuppKers ears - He went about finding a
argument has been quietly procedures can be found for an retail chain.
played down, partly as a result ancillary finance Bill to hive off The scale of the new bour- Canadian shareholders in London is that they are not J£L ”S^SS!eJS
of evidence to the select com- the more technical fiscal bon operation is rather smaller Oceanic. At one stage It looked creative enough when it comes
mittee that the "forestalling" measures. than the last deal Here a? if INA, the U.S. insurance to thinking up ways of spending
effects would not- in most cases H the Treasury shows this Gulliver is spending £22m. Bade giant, would Icome into the deal. puMic money. ., . SSfn?
be very serious. Instead, the autumn that it is genuinely not in May he committed ’flOlm SI *ter has been beating the You probably share my su r-
Government is advancing the afraid of a wide and informed with GoWsnslth. But the flnan- looking for |25m or so to prise to read that nugget of “
strong partner to boy out The trouWe with the people of ^
tlia rqnaWiov* AhAmbnldtui. » T rinv?ATt fc ifihof ffiVwwir ora tint litC JTTGIHSft SQtilOribCS u3VC
more forcefui line that detailed debate on the strategy for the dal setting and the people out the existing share- inteffigenee. But we should 1® JJ®
tax decisions should be taken at next Budget it will then be up remain the same. holders and bolster Oceanic’s take it seriously because it ‘x.- °,T 10 “* e ® tablislied
the latest possible moment and to Parliament and its com- Where does our hero strike base. " The company is comes
respond appro- 1 next
highest
concubine.”
Yachting Monthly carries a
after the major work on spend- raittees to respond appro- next ? Logically double glazing s ° narrowly based in shipping echelons of Greater London . *? J cames a
ing programmes has been got pnately. Otherwise the veils and bathroom showers should fhat it is very difficult to CoandJ wblflh is, of course, p 1
out of the way.' of secrecy will doubtless show a be Gulliver’s next subjects for interest outside Investors," he making strenuous efforts to ,®? K>r
.t ...h.mn 4am4avii-v tn uTifurf aoain Tf is huiAtansH, SflVS. lUfeantuhlla tha aviaK.n l10OT3teu ladies— Non-estab-
Bank of India
announce that on and
after 9th August 1982
the following rates will apply
B&Sfi R 3 t 6 ... . 11 ^% per Annum
(Decreased from 124 °o)]
Deposit rate (bask) 8i%
per Annum
(Decreased from 9J%)]
Bank of India
Nevertheless the autumn tendency to unfurl again. It is fifth-floor treatment Together **3™- v Meanwhile, the existing torpedo Margaret Thatcher’s !Sf? sta ^
statement will in future give now proposed that Parliament they make up the thind arm shareholders — Genstar, Power efforts to cut pribhc molding. concumnes of t-ne world
a much fuller picture of the should have three extra days for 0 f M$ quoted empire. Corporation, and the Fednav Londoners may dream about te L . rJJL have norrang to
economic and fiscal prospects debate on the estimates: much But a fly on the wan of shipping group— only wanted to how they might spend the 1086 DUt yonr y 5 ” 3118,
than hitherto. The actual deci- will depend on whether they Montagu’s august corridors sug- aia s on. the board as long as money they could win on the Ckheov imp
sions 'on spending win be given can be used to full effect. gests. that divestment rather . Oceanic stuck to shipping. football pools. But Mr Robin v/l/oeJ t/C#
f
Financial Times Monday August 9 1982
JOB CREATION
India
1 0 .
i * ’ :
u*ii
ln^
y
Lombard
The GBPs silver lining
By Ian Hargreaves
POES BOSINESS have a social much hope for real jobs in the
responsibility to help to create next five years," he says. “TTie
jobs at a time of mass unem- employment problem will not
^S2 nent L T - respond to economic growth.”
When the Institute of Direc- The siiver lining in this
tors circulated its members, on cloud, such as it is, is that con-
the subject earlier this year, it trary lo. the impression from
got a rather straight answer, the Institute- of Directors sur-
Seventeen of the institute’s vey, businessmen contacted by
*F°*?P S were clearly the unit are keen to respond lo W%Wh
t ^ lr Sr 0S,_ *e problem in their own locali- *
P .^ the Man ' ties on the right terms. "Their
cofiHKr r 5® ponse - . The respon- employees have children who
i«i«?sn/«« Pa - nle? 5 S* 0 find ' jobs, so of course
profits ana remain viable. Even rhev care Cornua hAa*; writ A "V •■
-resPonSbllitv^dmf th^ 0 *** 1 m P° nd i£ we «n find practical
Pli« with Sa5Snf S d abo« the Wa SJ Br JS , felfe?' •'
dangers of taking measures The search for a practical, '•• *
which might erode competiu™. ^“Mic *wn»ch has takea ,.J
ness. ‘ the unit 20 months since Mr * •
The know-nothing
U.S, Congress
. By Anatole Kaletsky in Washington
lys for them to do so."
The search for a practical, '
stematic approach has taken ■ W'fy.&M"
"£XSr ~ not ** SSK 1 ££*£ If S ■ By A** 101 ' Kaletsky k WuUnBhm
By this time, experience had like the British Waterways
also matured in a number of Board, with a supplier of THE U.S. SENATE, egged on would normally make a tam-
other local action projects, like materials and skilled super* enthusiastically by President porary recession worse,
the Pilkington's St Helen’s trust visors, like the construction in- Ronald Reagan, committed an Furthermore even without a
and the Swale, Kent, employers' dustry, with unemployed young act of folly last week that could dav * s srudy of economics such
federation initiative, set up people. eventually make the U.S. system a child could have told Presi-
some time ago, and Mr Cooke It is evidently too early to of government the laughing rf en t e easan that he was being
was convinced That he had a judge the likely success of the stock of the civilised world. On a humbu™ at his press confer-
formula. The first step in every unit’s work. Mr David Cole, Wednesday the Senate voted en ce last week when he said
case would be to identify the joint deputy managing director 69-31 in favour of a proposed thp Federal Government
most influential businessman in of the Thomson Organisation, amendment to the U.S. consritu- balance its budgetiJust
the town, use contacts to win who has followed it closely, tion requiring the Federal Gov- a /-umiy, The fact is. after
his sympathy and get him to says the units approach is eminent to run a balanced gji that sensible families save
‘"n.w , 6 however, the unit hee I. prompted .n* .n, a „i borrow ,o suit their cheu S .
systematic approach has taken
the unit 20 months since Mr
However, the same question- £ arae ® Prior - then Employment
naire asked: “Are there any
parricuiar groups of un-
Secrelary.. first . invited . Mr
Cooke, formerly with. Cour-
empioyed people to whom taulds a “ d for 10' years a senior
m
special help should be given’" consultant at PA Management -V
All the groups thought there Consultants, to create and lead -
were and 19 of them identified 1116 uniL _ "
young people as a specially de- In its first year one of . the x
servim» prnnn ‘ linir's main ai-hievementa vie
a much more sophisticated idea The early weaknesses which ?es ponstb 1 e C ° ° ^ "co rnm e^Tt ator ^ analon^nrlu^^iut fhe hut?
of what it would like "Mr Big" led to. the follow-through ^Kc h an SSSESt if get-bTance" STS
as Mr Cooke rs him, to do. It failure in four of the five it were to pass all the stages cf
wants him, tmtialiy, to gather towns initially studied appear ratification be m ore an ia r ‘
roge cher the half; dozen or so now to have been corrected. absurdity or a disaster’ America's politicians presum-
most importanr employers in Other weaknesses, however. J ably do not need to be
town — "the local mafia" in the may still persist. It is not Even the far-right and instructed on these elementary
parlance of the' unit's planners certain that a system of staunchly Rcaganite editorial points of common sense. Why
— and invite them for a dinner secondees, although of obvious pa?cs of the Wall Street Journal then do they persist in their
at which Mr Cooke or one of value .in securing the practical, have repeatedly poured scorn folly? And why are those who
the other members of the unit's active involvement of com- on the balanced budget amend- oppose it so mealy-mouthed
small central staff will explain panies, can supply the neces- menL It would be unworkable about the economic principles at
the system. sary continuity for what looks and would merely distract atien- stake?
The strategy in each area is certain now to be a four or tion from the serious business It = ^ answers to these
to identify a manageable catch- five year haul, even though the of “going to the polls in Dues tions more than the amend-
ment area, to carry out a town unit’s own existence is formally November” to elect fiscal con- JL--. iicpif which iustifv
***&£ *? aranteed only until the end servatives with the courage to cern< as we \, as AcriA< £;
serving group.
This is not necessarily a self- to assemble and hold together
con tradition — theoretically Gov- what Mr Cooke, with a flair ior
eminent could do something for overstatement likes to call
young people without the active “ the greatest board ever assem-
involvement of business, al- bled in peacetime.” Its members
though it is hard to see how it include the heads of Metal Box,
would be relevant — but it does Thom EMI. Wimpey Construe-,
illustrate nicely the gap tion, BP Oil. United BisculTs,
between business theory and BAT Industries, British Rail,
practical personal response, and the Thomson Organisation.
There can be hardly anyone in Its chairman is Lord Carr,
Britain today, businessmen in- chairman of Prudential Assur-
c.1 tided, who has not had per- ance. who as . Mr Robert Carr
sons], as opposed to professional was Employment Secretary in
contact, with the unemployment the Heath administration.
.. ". -vy
:: i*-' 1 k.,. i*
problem and felt the urge to
respond.
Mr Cooke’s style is very much
founded upon the belief that if
litis is very much what Mr you get the right backing you «
James Cooke discovered 20 will get the job done, so the ^
months ago when he set out oyt composition of the board was
behalf of the newly formed CBI crucial. He has been, pri ma rily, -■
Special Programmes Unit, to in the business of influencing
persuade large companies to top people and says that in look-
pro vide more places on the Gov- mg for active support— a £2,000
of MSC training places and of next year.
other job creation ideas and to There is also a rather obvious 1 has maintained.
Zl V£S*3™F*- to* Journal the ^ay the u. S . political system
establish a full-time nucleus of gap in the absence of trade Y t reacTion against th „ w^a 'secre/bailot^there
““l?" j-^Clpata In the junj. would not be 30 votes for it,”
concerned The executive will vK C °° ke j Pn v. fe!,S fha cians has been remarkably Senator Daniel Patrick Moyni-
then set about traditional econo- flabbergasted ^at the unions mutet j g VCJ1 jjbe-ral oppon- han, one of the amendment's
mic develonment tasks like £ fhlc *’ created the Labour gnrs havp most |y followed the few unambiguous opponents
1113 c .. . e *°P* nent _ tasKS > “ke have not come forward with Wal , c,-., Tm.mai lin, Thm- sairi rvn Wi-Hnesdav itist after
searching for investment.
nave not come torwara witn Wall journal line. They said on Wednesday just after
massive support. _ However, at have concentrated on the legal the senate vote. Several com*
The unit has now recruited WaJ ievel the unir has fcxperi- na OT1 rnp me « naie J . volB -
its "Mr Big” in Newcastle, Se ofharouSousr eta tion- P rob,e 7 ls of enforcement and mentators have suggested that
Leeds. Hull, Wolverhampton. 5ith uS^ re,ali0n pointed 10 President Reagans many of the senators who sup-
the Rhondda, Luton, Ipswich, s - - ■ 1 I hvr*ocnsi> in sunnortme bal- ported it did so only because
a Ai 1 " UI “. ■. ... hypocrisj' in supporting bal- ported it did so only because
At the national level, the anced budgets in the future they believe it will eventually
and the Border Country of ■ , , “7 anced budgets in the future they believe it wU
Scotland, and aims. accoTding H^o^and’ praSfral^ttemSt while enacting record deficts for fail to be ratified,
to the plan agreed last month ? 0 S JSk memptoyment an“?s ^ P resenL I^tead of developing policies.
^ *»•- - — 3 t0 amtJC UDemployment ana as if it were not for the tire- they send out pollsters to their
Ashley Ashwsod
James Cooke, in front of his VDU, ready for action.
emmenfs youth training subscription plus the willing- . ^ . ... . . ^ j- - -
schemes, such as the Youth ness to second managers to pro- ^ «ie debate atwut the broaden- tants studies of five towns:
Opportunities Programme vide other help in kind— he has J >f Reddi ^; Preston,
(YOP). won. over 90 of the top 100 com- scheme into the higher quality Southwark and Kilmarnock.
by the unit's board, to create T/nd wei“ht to the K ^ were not for the tire- they send out pollsters to their
50 of these “community action CBT s mat or wSicy Satement on some legalistic and consTIIu- constituencies to- discover the
programmes” by the end of otmSS IhS tional Problems. balanced "themes" (ie slogans) which
next year. SLni J ^ expecled budgets would obviously be will a PP**I to the voters, using
(YOP). won. over
Mr Cooke says that in talking panies.
t. u.. ~e An .f n..
whole-year
Training The idea was thait once the
to the heads of 90 of Britain's Also in the first year, the 5f heme - ° v ffered 3 crifi <* ue of d *f* «* there, the units
100 largest companies he has unit found 32,000 industry-based “ e w *y the schemes are man- regional staff would be able to
discovered two common themes: training places for use in the 3fi e d .and helped by timely inter- engage the interest of local
concern that YOP is very largely YOP work-experience pro- ven hon to save from closure a people in taking action, but
training people for jobs which gramme. Thus it helped the number of major industrial except in the case of Neatii
optima] mix of chocolate, sugar
and milk in their candy bant.
Instead of politics, the elec-
do not exist and the conviction Manpower Services Commission, M
(with the exception of retailers which administers the scheme, From the beginning, however, the Financial Times on July 29)
and some financial services com- to shift the. bias someyrhat away Mr Cooke felt that the key to a it did not work,
panies) that they will not be from small employers, who have more effective response was to “We demonstrated that local
adding to their workforces in frequently been accused by get involved at a more local forecasting could be done, but
the next two or three years and trade unions of using YOP level, but he was struck by the in the end it didn’t really
training facilities.
(whose case was described in
may well be doing some more trainees
labour, non-existence of town-level fore- matter that much whether the
cutting.
•* Nothing that I hear from better training places.
towards larger companies with casts of unemployment.
numbers were plus or minus
top companies suggests there is The unit has also contributed Bank agreed to finance consul -
National Westminster 20 per cent the problem was so
comments
Cooke.
next year. «7mnnn 4 ^ budgets would obviously be wli appeal to the voters, using
“We want to take 50 towns a5om with a number of other desirable in principle, every- the techniques employed by J*
and be able to say to the MSC miKEES lid? Vs body in U.S. politics suddenly confectioners to determine the * W,
—there we've solved these for ^mailer oreanisanons, su<m as believe optimal mix of chocolate, sugar
you-and all at no extra cost to Bu ® n «* m the Commumty-a seems oeueve. milk in their candy' bare,
the Government. Our first recently-formed group mvolv- Any schoolboy who has instead of politics, the elec-
priority is to find these training Jn {* leading companies and studied elementary economics lors are 0 ff ere( j a know-nothing
places." says Mr Cooke. Butin other interests to. promote could tell America's lawmakers p £pi,ij st demagogy, updated
the long run. he believes that F e ? u>r s0 5 ial i i W!iren , e I ss that governments in other coun- for the late 20rh century hy
the energy' released by the com- business; the unit could also tines do not try’ to balance their the use of TV commercials and
munity programmes will help play an unportant part in focus- budgets each year, regardless computerised opinion polls. It
to stimulate small businesses, in S d 3 ® attention of British of economic circumstances, and is perhaps small wonder that
create new projects in areas companies on broader questions that They refuse to do so for complex issues like economic
such as tourism and community of social responsibility. very good reasons. It does not policy and (he subtleties of
services and become, in effect, Do that score, Mr Cole has take a madcap Keynesian to diplomacy are proving more
small engines of real economic no doubts where the business recognise that a recession will politically intractable as this
growth in their own right. community’s interests lie. “ If temporarily reduce tax revenues conception of government takes
Another idea, still in its early the social fabric of the country' and raise public spending— and hold. Xt is even less surprising
stages/ is to try to create what gets frayed, then that is not that refusing to allow this tem- that fewer people in the U.S.
the unit calls “ consortia ” pro- going to be good for commerce porary- effect to happen by rais- bother to vote with each major
jects, by which it means or for anyone else," he says. ing taxes or cutting spending election that goes by.
Letters to the Editor
The continuing search for an heir to current cost accounting
From the Managing Director,
Lead Industries Group.
■Sir. — I have been following
with interest the debate in
your columns between the rela-
tive merits and weaknesses of
historical cost accounting iHC;
and current cost accounting
(CCA).
For most manufacturing in-
dustry CCA, despite its subjec-
tivity, is still the best attempt
so far. to reflect business reali-
ties. Clearly there are sincere
minority views that: O), CCA
is not relevant to some busi-
nesses; (2), the costs and efforts
of implementation are dispro-
portionate to its benefits; and
(3). CCA is not as pure a
system of inflation - accounting
as current purchasing power
(CPP) accounting.
Our group strongly support
CCA because we genuinely be-
lieve the system best unifies
reporting requirements for
shareholders, employees and
unions. Furthermore, we have
found that as HC methods
proved decre a singly useful we
From Mr Tt. Instone
Sir, — Accounts are too im-
portant for it to, be left solely
to accountants to determine
their form and contents. May
I therefore intrude my views
on the SSAP 16 debate as a
lawyer and investor?
As an investor, my sole
interest in accounts is to ascer-
tain what a company’s man-
agement has done with the
resources under its control
during the accounting referoce
period, and bow its perform-
ance compares with that of the
previous period. This is an ex-
clusively historical inquiry.
had to develop CCA systems in
the vital areas of depreciation
on the replacement cost of fixed
assets, replacement cost of
stocks and the erosion of work-
ing capital values. This infor-
mation has also been useful in
explaining business realities to
customers, suppliers, unions and
competitors (who may be
struggling with major cash flow
problems while still reporting
a profit).
In my view there are two
serious weaknesses of CCA
which need tackling urgently-
The first is its degree of sub-
jectivity and the second is the
Inland Revenue attitude. With
regard to the former — most
criticism centres around the
materiaf effect of CCA deprecia-
tion yet, under the HC conven-
tion, views also have to be
taken on asset lives and re-
dundant plant and assets not
used, while the problems of
fully written off assets are
Ignored. Provided CCA adjust-
ments are consistently calcu-
lated, the disadvantages of
butable reserves of the group
and those of the holding com-
pany, which alone are relevant
for the purposes of Part HI of
the Companies Act 1980 as
amended.
Is it surprising, therefore,
that I regard such accounts as
aiming at a degree of precision
which is both specious and
irrelevant for all practical pur-
poses?
Ralph Instone.
7, New Square,
Lincolns Xnn, WC2 ,
subjectivity can be largely
overcome.
With regard to Inland
Revenue acceptance of CCA it
is still too early to discuss the
monetary working capital and
41 gearing” adjustments. I would
propose two adjustments only
— namely depreciation and
cost of sales. Depreciation
allowance can either be given
as at present by way of 100 per
cent of capital expenditure or
by a CCA depreciation charge
based on ASC guidelines con-
sistently applied and audited.
The subjective conflict between
a high depreciation charge (for
taxation) and a low deprecia-
tion charge (for shareholders)
will in practice be neatly
balanced.
Any problems Ihe cost of
sales adjustment causes the
revenue would largely be over-
come if the Inland Revenue and
the UK accounting bodies
accepted the LIFO method of
valuation. This is well tried
and used in Che U.S., Canada.
Australia, South Africa and
I am not interested in elicit-
ing from published accounts as
answer to the question whether
the real” "rvalue of those re-
sources has been maintained,
increased or reduced during
that period. Nor can any such
inference be made with a suffi-
cient degree of precision to be
of any utility, because the real
value of resources cannot be
determined in isolation , from
the purpose to which they are
to be devoted. A man (or a
company) with available re-
sources now. worth £x owns
more read value than he owned
a year ago if he is minded to
purchase copper, but less if he
needs, petrpL ...
Both ';** - * lawyer and as an
Inveswr.I am interested to know,
bow much of a 'company's re- ’
sources could lawfully, or
pntdentty, be ' distributed in .
dividend. But SSAP 16 accounts .
are - useless for this purpose,
since none that I have seen dis-
tinguishes- ‘between: "the distri-
Frcrni Mr J. Clayton
Sir, — Lex (August 2) is wrong
in . his view that current purchas-
ing power " has been swept off
tiie stage by the Sanffi-Iands com-
mittee.” There are two profit
concepts: in “money" terms
(Sandilands); and in "real”
terms; and, as an ardent Sandi-
lands advocate, I accept the
need - for both. Indeed,
the Blue Books, the best
exposition of CCA, are
me€cu§ous in presenting all
aspects of national wellbeing,
first 5n “ money " terms and then
in “ real ” terms. What they do
avoid — as subjective and unreal
—are any calculations based on
mixing money and “funny-
money.” That is one .reason why
SSAP 16 Is irrelevant: as is the
scheme suggested by Mr Allen,
to which Lex refers.
What is desperately needed is
a rapid development of the
Sandilands “ money " concept.
AH companies — not only the 1
per cent listed— should be en-
couraged to show: first, net
operating profits— adjusted for
stock appreciation and current
value depreciation — second,
total gains. Unless both aspects
are shown, some two-thirds of
profits — adjusted increase in net
assets — are ooncealed-
Once the Sandilands “money"
aspect' of profit has been widely
implemented, the completion of
inflation accounting can be
attained by expressing share-
holders' funds on a CPP basis.
But ft seems advisable to make
this a later stage; for, I fear, it
will reveal that many— if not
most — companies have been pay-
ing dividends out of capital.
For example, the figures of
profits and assers per share,
relevant to dividends, of one of
our most successful companies —
GEC — for the two years ended
March 31 1981 are:
In Sandilands' ” monay " larms—
Europe and is no less subjec-
tive than the widely used FIFO
method. Adoption of LIFO
would also eliminate the need
for the Revenue's cumbersome
and unfair “stock relief." If
the Government, the CBI, the
Stock Exchange and the
Accounting profession seriously
want to get CCA off the ground,
the Corporation Tax system will
have to be realigned to take
account of CCA.
From the Chancellor's Budget
point of view I see little differ-
ence between 100 per cent
capital expenditure allowances
and “ stock relief ” on the one
hand, and CCA depreciation
and UFO stock valuation on
the other. From British
Industry's point of view profit
reporting and lax assessment
would come closer into line —
and the message of real profit-
ability decline in the last
decade will be clear for every-
one to see.
M. J. G. Henderson.
Lead Industries Group,
14, Gresham Street, EC2
Penes per share
1981 1980
Dividends
.. 10.25
825
Net operating profit..
.. 35.4
257
Total gainj
.. 88.7
58.7
Wei assets
.. 387.5
329.9
In ” real ’* terms—
Total gains
Jfack Clayton.
27.2
4.0
19 Park Road,
Chea m,
Surrey.
From. Mr J. PftiHipp*
Sir.— Once again the informed
bulls of accountancy hold sway
over their tradition-bound
critics. The transformation of
the profession since i960 from
That of High Street mechanics
producing the annual MOT in
the spirit of caveat emptor. lo
an industry composed of com-
peting chains of financial ser-
vices hypermarkets has left
many of its members yearning
for the golden past.
The vote will have split
.mainly on size of firm and the
principle of relative ignorance
(that which we do not under-
stand we fear), but these fac-
tors are not unconnected with
age. The swamp of turgid
legislation successive parlia- ]
meats have seen fit to pass now
exceeds the digestive capacity
of any. single accountant, and if
unchecked will force us to
finally adapt to the modern
world by specialisation. It is
this fear of the free market,
of uncontrolled change strip-
ping guild artisans of a pro-
fessional pride in their work
that gives the opposition to
current cost accounting a Lud-
dite (or perhaps more charit-
ably, Marxist) flavour.
The prevalence of two types
of inflation — relative price
change, and the general uplift
— ftat made the last decade so
chaotic, have left it very diffi-
cult to fairly represent in
figures the financial position of
any organisation. It is, how-
ever, scarcely creditable to
pretend that the problem will
disappear, particularly as SSAP
16 requires relatively little
effort for compliance.
CCA has become a cause
cei^bre, like the right to abor-
tion. not because the forces of
reaction have any real interests
at stake in the outcome, but
through the human need to
project any deep-aeated sense
of insecurity into the public
mind of the society we dhare. .
Jeremy Phill'tpps.
72, Southerton Road,
Hammersmith, W6
BELCONNEN MALL SHOPPING COMPLEX
CANBERRA, AUSTRALIA.
T he Commonwealth of Australia, child-minding centre, administration offering a rare and profitable investment
through Marketing Agents Richard office and a 3-bedroom caretaker’s fiat. opportunity in Australia’s Capital city.
T he Commonwealth of Australia,
Through Marketing Agents Richard
Ellis, invites world wide tenders lor the
sale of Belconnen Mall — a spectacular
shopping centre complex, situated in
Canberra, Australia's national capital.
Belconnen Mall stands on a large
6.967 hectare site, only il kilometres from
the heart of Canberra City. Opened in
February 197$, it offers a wide variety of
stores and facilities to the people of
Canberra — apoDulacion of approximately
223,000.
The complex itself comprises over
55.000 square metres of air-conditioned .
retail space and includes five major
stores, two variety stores, 131 specialty
shops, 31 service/professional outlets,
child-minding centre, administration
office and a 3-bedroom caretaker’s fiat.
Major tenants include Mver, Calcs,
Woolwonhs and J.B. Young.
Leading national specialty tenants
include Sussan, Katies, Sportsgiri, Mark
Foys, Angus & Coote and Edmcnts.
Service tenants include ANZ Bank,
Bank ofNSW, National Bank* Teleconjj
OPSM.
The Belconnen Mall complex consists
of three levels of retail space with 1800 car
. parks, the majority of which are under
* cover. The complex alsp boasts excellent
loading facilities and a sophisticated
security system.
This" spectacular shopping complex is
now available for sale by world wide tender.
offering a rare and profitable investment
opportunity in Australia’s Capital city.
Tenders for the purchase of
Belconnen Mall close on 21st October.
1982.
Brochures containing further derails are
available to all serious enquiries, by contacting:
Richard Ellis, 64 Corahili
London EC3V 3PS, England.
Telephone: 01-283 3090. Telex: SS7732
Richard Ellis
Richard Ellis (NSW) Pty Ltd
60 Margaret Street, Sydney, Australia.
ir'^
U.S.$10,000,000
Floating Rate U.S. Dollar Negotiable
Certificates of Deposit, Due9th Augustl 984
THE SAITAMA BANK, LTD.
LONDON
British Am.
& General
up slightly
CHARLES BATCHELOR ON AN LBI SUCCESS
[How unexpected tactics can
clinch a take-over battle I
Limite d and its subsidiaries
Results
far die six months ended 30th June 1982
The Directore of Barclays Bank IntamaSona!
Limited report the foBowingunaudted
group resits for the six months ended
30th June 1982.
rs^i urnui a iajkc-urci uaiu*
Trust were a little higher at
£650,000, compared with £634,000, in THE battle of wits between duced only a small increase In directors was still holding out.
iwnfev
enled
30JJ2
£m
Halt Vear
sndad
3L1251
£m
$
In accordance with the previsions of the Certificates,
notice ir hereby given that for the six months interest
period from 9th August, 1982 to 9th February. 1983 the
Certificates will carry an Interest Rate of 131% per
annum. The relevant interest payment date wifi be
9th February. 1983 . .
for the six months to June 30, & company making a contested acceptances. But at 3.25pm— -'five minutes
1982. take-over bid and its unwilling " We tried to get the agree- before the offer closed on^ July
Group Profit
Less: Interest on Loan Capital
129.0
25.0
m . . . . .. . ... , prey the merchant banks which ment of the Braid directors and 28— acceptances came in for a
The interim dividend will be g^sere 3 re constantly were ready to increase our offer further 29 9 per cent of the
lp net against 0.925p last time, f unexpected to 60p but they refused." shares. Avondene had changed
but the company says the in- tecti By j uly 7 Lookers bad raised its mind.
crease is intended to reduce ri bnidine to 28 Der cent and Mr Pryde puts Avondene s
Lloyds Bank International its holding to 28 per cent and
60p but they refused." shares. Avondene had changed
By July 7 Lookers had raised its mind.
: holding to 28 per cent and Mr Pryde puts Avondene s
Merrill Lynch International Bank Limited
Agent Bank
disparity and should not be taken Manchester had acceptances from a further late decision down 10 the fjet
as an indication of the rate of 1^18 dhJribu tor Lookers be- 7.6 per cent. But with 40 per that most of the small share-
increase in the total for the year. Sr £ cent of the shares ranged holders appeared to have 1 a*
Earnings per 25p share are f3.5& cash bid for Liverpool against it there was every pro* cepted the offer “d that ootiMj
Profit before taxation and
extraordinary item
Taxation
stated at 1.2&P against 1.26p and rival Braid broke new ground*
net asset value at 67.to compared At a cruc i a i stage of the bid
rivaTBraiiT" broke ‘new ground"* pect that the bid would fall and very restricted market would
A iAtLJ Zr wh the acceptances would lapse. exist for the Braid shares, given
At 21 crucial sijijb of tM oiu • LnokfiK 1 larsc minority holdiHH-
the bank took the gamble of ad- It was at this point that LBI ^ Michael Stenning of
vising Braid’s shareholders to advised shareholders to with- , MontagUi which advised
withdraw their aceptances and draw their acceptances and sell is not convinced however,
sell their shares in the market their shares in the market. The LJUTs tactics were that effeo-
— moving in itself 0 pick up the LBI team can recall no case of
offered shares. this having been done in a bid **Th p 0 ff er wen t the full 60
The bid was small in City where the bidder still had a 4^$/* h e gays. “ it is difficult to
terms It could contain lessons chance, however small, of win- ^ a,e story of a company
with 74p, or 6?.6p (73.Sp) fully J ffj e tank took the gamble of ad-
diluted. visintr Braid’s shareholders to
I
Profit after taxation
Profit attributable to outside
shareholders of subsidiaries
Ferguson Industrial Holdings PLC
Pre-tax profit up
110% to £3.4m
terms it could contain lessons chance, however small, of win-
ter other companies, LBI feels. m 2®\ T . , . ...
(Braid) which is in the process
of turning round from losses to .
Profit before ext raor d in a r y item
Extraordinary item: Special
levy on UK banking deposits
iwi urns. t IDraiu; wrncu m ujc
The bank's relatively young jn 0 ^ of tuning round from losses to
corporate finance department is "JL ^ntf^arebofders would set P rofits -
deUghted that its handling of the JfJ *° d Steorice thSthS “ We thought we were very
Lookers’ bid succeeded despite ° nijl d havero nav deitiSI few successful in convincing people,
the initial opposition of share- woma nave t0 P a * h eaiin B Iees - otherwise they would not have
L.u n i.«,. KU.t- nP “ Wa .hanlraH with hmltpre -,nri l.ij .... *k. Urf
holders owning a large block of
Braid’s shares. jobbers that there was no-one Mr Raymond Hazlehurst, man-
The Braid family and direc- d se in The market," say« Mr aging director of North West
tors who held nearly 10 per Pryde. " In the early stages we Securities. Avondene’s direct
cent of their company’s eouity, thought the Bank of Scotland it- parent, says: “I don't believe
secured the support of their self might bid but any other con- that you want to prolong the
largest shareholder Avondene tender would have come out be- agony when someone has built
Securities with its 29 9 per cent f° re this stage of the bid.” up almost 45 percent in a com-
otherwise they would not have
1 We checked with brokers and held out to the last. day.
Erofit attributable to the
members of fixe BanJk
•Interim Dividend
Mr Raymond Hazlehurst, man-
Profit retained
33^
. 426
42.X
0.1
02 ■
03
r
13.4
424
41.8
V
F.T. «
F - r - f
F.T. 1
Bard;
- Bfoby
' Blw .
Borth
* Brady
£000
Sales
Trading Profit
Employees’ Profit Sharing
Profit before Taxation
Earnings per Share
Dividend per Share
Net Assets per Share
FEBRUARY
FEBRUARY
1982
1981
108,061
78,856
4,145
3,306
398
269
3,423
1,632
11. 3p
9.7p
5.7p
5.5p
90p
87p
holding, in Uie opening stages of , „ . .. _ , . , . .
the battle ally only run for 60 days if no Had Lookers not advised share-
0,.. in 1*10 clasino minute* of competing offer has been made— holders to withdraw their ae-
fhp nffpr^nertod A JoideDC a Lookers held 43 per .cent of ceptances and bought shares in
sub<ri diarv 5 The flna5?e house Braid's shares. the market there is little chance
?orth West Securi ties itself part Acceptances, which at one it would have gained a holding
of the Bank of Scotland group, stage had stood at 7.8 per cent of more titan 40 per cent, which
switched allegiance and came out had fallen to 2.5 per cent with North Wert Securities says was
in favour of 'the bid Lookers convinced that it had “crucial in its deciding to
'i?i .L .r n nrt fnr picked up the withdrawals in the switch allegiance.
This took support .for ttie offer ^ arket p • ^mcally, while Braid was a
V 75 sPner cent. 10 But even *** 455 P er cent customer of Lloyd's Lookers was
comfortable 75.8 per cent (2.5 per cent of which would not. LBI says this proves the in-
Pnor to this move Mr David ] a p Se jf the bjj failed) Lookers dependence of the merchant
Anslow. one of the two-man /one- no t have control and hanking arms of the big clearing
woman team at LBL admitted 40 per ren t block of banks. This will be little com-
that he had resigned mmseif to Avondene and Braid family and fort for Braid.
By day 59 — bids may norm- pany.”
up almost 45 per cent in a com-
Had Lookers not advised share-
holders to withdraw their ae-
NtHcs
1. TheBankisaw/iolVownedsubsioiafyofBafcteysSarikPLCbuthasteoin
Ssted unsecured loan capital. ri , - .
2. The accouming policies are as explained in note 1 on page 9 of tne 1981 annua
3. GreupproSt includes share dJ profits of associated companies £l75m
(December 1981 £i5.6m; June 1981 £i2.5m).
srucial " in its deciding to
ritcb allegiance.
Ironically, while Braid was a
BASE LENDING RATES
Comments by the Chairman , Denis Vernon
# The Company achieved a pre-tax
profit of £3,423.000, the second
highest in its history.
accepting that Lookers would
gain only a large minority bold-
ing in Braid.
It looked as though LBI and
Lookers would have to try again
BOARD MEETINGS
Tha following companies have notified Fund: Property Security Inveadnant
This success largely due to much
lower gearing, combined with
lower interest rates.
Last quarter affected by extended
holiday period, as well as severe
weather in December and
January.
First quarter's sales in current year
of £29 million have produced a
trading profit of £957,000 which
is a 24% increase on the first
quarter last year.
after the l^month pause re- * ,I ?» of board meeting, to trie Stock Truat.
wired by the City cede oe Me- JTtJSTS SJSS&
FUTURE DATES
, held lor die purpose of considering Inmrima —
OVerS and mergers. dividends. Official indications are not Btagden Industries Aug 23
We broke new ground in a available n to whether the dividends Danish Be con Sept 14
number Of ways.” says Mr are i/narim* or finals and the sub- Grovebett Aug 11
number of ways.
Richard Fortin, a director at divisions shown below ore based HiH and Smith Aug 26
LBI.
Mr Jack Pryde. one of the
LBI team involved In the bid.
mainly on lest year's timetable.
TODAY
Rea Brothers
Wagon Finance
Finals —
explains What he calls a “ nail- Trust. Carrington
Investment Associated Denes Aug 25
For a copy of our latest accounts, please contact F.I.H. ( Dept F.T. ),
Appleby Castle, Cumbria caib bxh.
biting" sequence of events.
“ Lookers already had a 21 per
cent bolding in Braid before it
launched its bid but by the first
closing date we only had accept
Travel. Rely on. Transport Develop- Rasmvor
Horizon Meat Trade Suppliers Aug 17
Trattord Carpets
aaces for boldines of 6.8 per
cent. We had to do something NET REVENUE before tax of £11,776 (same) and loan Interest
Glasgow Stockholders unchanged
Ferguson Industrial Holdings
£480.000 to £3.58m— but this pro-
r SA\
day, d
tralian
side w
about t
cold c
Wester
tntlia
the otti
benutif
polirici
it up.”
Sure
Labor
to new
investo
to pcw£ •
ins of .
The .
by the i
Govern i
big .Tafc
in the
Pan com
and Gel
They'-
week,
claimed
tial rep*
the No:
parr-men
suggeste
Jabiluka
prospect
potentia
has been
tic to sa
It was
Austral i;
uranium
priced at
pound i
prices ar
this in ;
like renif
years to
Jabilut
Jtracts at
uhe part
arrange s
of Cover?
mining p -
not meat
was unat
^ the si
Mr Tni
Pancnnnr
irisingiy.
romtnenfs
1e maint
abiluka's
*ointing ■
n a posit
eenrify
trategic i
While
ibiluka
rie to a
US-term
ight be
w dolla-
isure si
an scrat
"ere in
irket.
Sipnifica
ntitrenta.
ich of
Europ
jnirias i
nevitab!
' .P.psajfc
Public Works Loan Board rates PENDING DIVIDENDS
Effective August 4
Quota loans repaid
at
Non-quota loans A* repaid
at
( drastic Glasgow Stockholders Trust for £185.976 (£141.253). Tax took
Lookers lifted the value of its the six months to the end of £156.500 (£167.982) and the pref-
offer by Sp to 5Sp— increasing June was almost unchanged at erence dividend took £7,350
the total valuation of Braid by 1471.074 compared with £471,586. (same), leaving earnings of
£480.000 to £3.58m— but this pro- j .As already announced, the
— directors expect to recommend
a total dividend of not less than 17 r p
PENDING DIVIDENDS FT Share
sss. STh S°.^£^i£’ 2?2Wi i l!, d S. d of N« 5 L™ S2 SfJSTim, Information
statements may be expected in the next few weeks are given in the
FT Share
Information
». Ysara
up to 5 ..
-»■ Over 8, up to 9
Over 25
by EIFt
A*
malurityg
by ElPt
A*
maturity 5
. 11}
113
124
12?
12}
123
- US
12
124
121
122
13}
. 12
12
12}
121
122
13}
. 12
122
12}
121
125
13*
. 124
124
13
12f
123
Mf
. 122
12}
134
12|
123
13}
. 125
134
132
13}
131
13*
. 134
13
13
13f
U}
13}
. 13
13
13
13}
131
134
following table. The dates shown are those oF last year’s announce- The following security has
thus*) have been officially notified. Dividends to be declared w ^f e
will not necessarily be at the amounts in the column headed r “J2 n . l |"5. r Q S“ l 5
** Announcement last year.” of £ ‘25.S87 (£671,972 ,
Information Service
From the higher gross revenue
of £725,887 (£671,972), manage- Hunting Petroleum Services 10
Announce-
ment lest
year
‘Associated
Dairies. ..Aug 25 Final 2
•Auh and
Wiborg.-.Aug 13 Interim 0.5
•Non-quota loans B are 1 per cent higher in each case than
:■ non-quota loans A. t Equal instalments of princtpaL t Repayment A 13
- . by half-yearly annuity (fixed equal half-yearly payments to include Bobcock , nL " SB p t 2
. principal and interest ). § Wtth half-yearly payments of interest only. BBA Aua 27
. . *• In future these rates will now appear each Thursday instead of bet • s«pt 3
Monday t
RECENT ISSUES
EQUITIES
| "lija- . 1982 :
■co.!-"!*: , High Low
2 F - p - - , «s ; 37 'Anglo-Nordlc Bp . ... 37 -b0.89 2.0; 3.420.8
" ;F.P.' - , 82i 9 75 [Antoragaata HldgsiEI 80 j 7.0 • 3.6-18.5 2.5
*f ; - i30r7 | 20 . 11 Argyll Foodi WarT’tsJ 17 -1 - : — : - | -
S45 jF.P.i — 46 34 Atlantis Res. Int- 34 1—3 ~ . — ! — i —
— IF .P. 1 — j 24 j 24 Bo rad In Holdings 6p; 24 0.6R 1.3, 3 J Sfi.B
33 F.P.: 7i9 j 66 44 * Bio- Isolates lOp 57 —2 . — i — I — — •
*35 FJ».. - | 41 ; 38 ifiColstnan Milne 10» 40 -1 ul.ffl 3Jlj 6.4 6.4
{58 FJ*.30/7 I 59 52 *Oencora 54 - ! - — i -
— F.P. 29/11,106 ilOO ■{■ Ecobric Now Ordiil) 100 . — belKLB l^jlfi.Oi 4.4
k . — iF.P.I - | 63 i 60 •» Do. Defd I 80 ' - [ — I — I -
$110 IFJ*. 1 - (102 !l60 >5 1 n t'ouroBoTcch.ZD p 1 64 -2 I u4.0l 1^] 3.6'25h
or S60 iF.P 417I9 60 , SO *Knigtit CnuptrlntSp; 50 bdl.6| 2.0| 4.&15J1
s- 1137 FA 30/7 195 |l50 4-McCarthyaStone...il87 b6.7B! 2.714.4' IU
^120 FA.37I8 1171 1S3 Multitone Elect |168 -l u2.B2 3.4 2.1 14.9
'a- {ISO F.P. 13/8 155 ISO <*Oirf!eld Imp. Snrc..|l53 u2.1 3.7 2.0 17.4
* — F.P. — 26 20 ■RIT&NorthemWar'tsi 22 — — I - —
* F.P. — 38ia 38 Rowe Evan* Inv. lOp.i 34 - — ! — 17JB
* II F.P. - 13 ! 12 |*Sheraton Secs iflpJ 12 - - —
F.Pj - 44 I <571*. Walker (Alfred) lOp J 301* ..._.;b0.73 B.3 2^) 7 J
— FJV ■— 36 | 30 i<£>Yelveiton In vs. 5pj SO ( — — I — i —
- . iF.P.I -
60 I* Do. Defd..
Iu2.1 13.7 2.0 17.4
- - ! - IU
F.'P.I - ! 44
FJ*.' - I 36
FIXED INTEREST STOCKS
1 1® is is!
-aria jjsi
SRH-*
High > Lew
" ; FJ*. ; — I »0p
99.528 i£20 i - 225,
52p Antofagasta 3.52 Pref.i£H j 65p ;
fim'Austmlla 13ts% Ln. 2010 ■ 2212 -U
■ Ml ir, r, I u 'fMI.
■100 ! F.p. I26;8 ;102ig i lDOis l 8ourn«mouthWatar9gRed. Prf. ‘8789. 1021a f Guinness
rttWl I w m bAil >4 A/M ’ AC 'A- MiV I In. 1 n 'QO ‘ 0*9 _ 1 I Ore.
Products ...Aug 13 Interim 1.0
Bobcock lnL...Sapr 2 Interim 3.4
BBA Aug 27 Interim 0.84
BET Sept 3 Final 5.70S
BlCC Sept 9 Interim 3.33
BP Sept 3 Intenm 5-25
8TR Sept 10 Interim 4.25
Barrow
Hepburn... Sapt 16 Interim 0.8
Blue Circle
Industries... Aug 26 Interim 5.75
Boddington
Brewanes. ..Sept 17 Interim 1.6
Booker
McConnel ..sept 17 Ini 1.375
Bowater Sept 3 Interim 4.25
British
Aerospace... Sept 15 Interim 3.0
“British
Aluminium. ..Aug 11 Interim 2.0
British Vita ...Sept 1 Interim 2.7
Bunzl Sept 16 Interim 4.5
Burmah Sept 16 lnterlraf.5
Cadbury
Schweppes... Sept 3 interim 1.3
•Carrington
Viyella.-.Aug 9 Interim nil
Charterhouse
Group. ..Sept 3 lot 1.925
Com ben .Aug 26 interim 1.2
Commercial
Bank Auat..-Aug 13 F/nef due
•Commercial
Union. ..Aug 10 Interim 4.85
Cons. Gold
Fields. ..Sept 15 Final 16.0
Costein ....Sept 8 Interim AS
Croda lnt. ...Sept 15 Interim 1.5
De Beam -Aug 18 interim 2Sc
Delta Sept 16 Interim 1.82
Eagle Star Sept 16 interim 7.0
Espamet lnt. Sept 15 Interim 2.0
•General
Accident.. .Aug 11 Interim 7.S
“Glynwed ......Aug 11 Interim 2.4S
Gold Fields...
SA..,Aug 18 Final 320c
GRE Sept 2 Interim 6.75
GKN Sept 17 Interim 4.0
(100 | F.P. '89i7 'lOOlj' 95 Cronite 14? CiW. Uns. Ln. 92 97
98.66: £25 8.- 10 28 5. 23 Midland Bk. 14% Sub. Uns. Ln. 2002-07.. STie—l*
100 i F.p. — '101 ij-iooig Nationwide Bdg.Soc. 14Xi4(7r83i lOUg
' 200 \f.P. . - 100i» 1001* Do. 13 1«£ r25/7/83i„ 100/a
, 99,346 £25 - 291, £41* New Zealand 14 1987 ' 291t- .. ..
. 100 ‘ £26 .9,9 251s 25 u Portsmouth Water 14% Red, Deb. '92.! 25it' + 1 a
* 1 100 ’F.p. 23/7 107p 97p Rotaornt 11'rSCum.Conv. Rad. Pref 97p
' t|R£2 , F.P. 3>B 82 B2 Smurflt iJeffereoni Pref. Unite 2p 82 -
. FIDO £10 17/11 14 1» 13i: West Kent Water 8J, % Red. Pref. 87 0 9- 14i 2
RIGHTS” OFFERS
PeoL Sept 11 Final 1, 25
Hawley Group Aug 26 Interim 1.1
Hepworrh
Ceramic.. .Sept 10 interim 2.25
■Highlands Aug 26 interim 5c
■HK & Shanghai
Ban king... Aug 24 lnt HKS0.21
•House o/
Fraser.. .Sept 29 interim 2.0
•Horizon
Travel .... Aug 9 Interim 1.15
Announce-
Dau ment last
year
•IMI Sept 7 Interim 2.0
KCA lnt. Sept 17 Interim 2.75
Lead !ndusts...Sept 10 interim 3.7
Legal It General
Assure nee... Sept 16 Interim 4.0
Lond. Mrchnt.
Securities. ..Sept 15 Final 0. 72
Nurdin and
Peacock. ..Sept 8 Interim 1.126
•Ocean
Transpon... Aug 10 Interim 4.3
•Pearl
Assurance. ..Aug 25 Intanm 8.5
Paareon (S.J.. .Sept 14 Interim 3.75
P & 0 5ep« S Interim 3.0
Phoenix
Assurance. ..Sept 2 Interim 7 3
Prudential Sept 10 Intanm 4.5
Raybeck Aug 28 Final 1.131
RocJutt and
Colmsn...Sept 8 Interim 3.8
•Rentoktl Aug 19 Intenm 1.05
RTZ Sept 16 Interim 5.5
•Royal Dutch .
Petroleum. ..Aug 18 lnt. F| 3.00
•Royal
Insurance. ..Aug 16 Interim 9.75
•Securicor Aug 18 Interim 0.55
Sedgwick Sept 10 Interim 2.25
•Shell
Transpon. ..Aug 18 interim 8.0
. Sime Darby ...Aup 27 Final 17
Slough
Estatea...Aug 26 Interim 1.2>
•Smith and
Nephew.. .Aug 10 Interim 1.3'
Standard and
Chartd. Bk...Sapt 8 Interim 13.8
Steetlay Sapt 17 Interim 4.0
■Stanhouse Aug 18 Interim 1 82
Sun Alliance... Sept 2 Interim 19.5
•n Group ......Aug 11 Interim 12.5
•Taylor
Woodrow.. .Aug 17 Interim 3.15
•Transpon
Development... Aug 9 Interim 1 . 45
Travis and
Arnold. ..Sept 16 Interim due
•Tricentrol ...S«pi 2 Interim 0,64
•Turner and
Newell. ..Sept 2 Interim due
•Ultramar Aug 12 Interim 5-0
United
’ Biscuits.. .Sept 10 Interim 2.25
UDS Sept 17 Interim 2.6
•Wagon
Finance. ..Aug 27 Interim 0.625
Weir Sept 2 Interim 0 1
Willis Fa bar ..Sapt 15 Interim 4.3
•Wool worth
(F. W.)...Aug 11 Inurim 1.225
Yorkshire
Chemicals ..Sapt 10 interim nil
• Board meeting intimerad. t Rights
ment expenses took
(£47,357/, debenture
£57,061 per cent Cnv. Uns. 1 a. Stock
interest (Section: Oil and Gas).
AJB.N. Bank Ui%
Allied Irish Bank ll|%
Amro Bank Ilf %
Henry Ansbacher 11} %
Arbuthnot Latham ... 111%
Associates Cap. Corp. 12 %
Banco de Bilbao 1IJ%
BCCI ...» lli%
■ Bank Hapoallm BM ... 11^%
Bank of Ireland 11*%
Bank Leumi (UK) pic 11 }%
Bank of Cyprus 11$%
Bank Street See. Ltd. 13 %
Bank of N.S.W 11* %
Banque Beige Ltd. ... 11*%
Banque du Rhone ... 12 %
Barclays Bank Hi%
Beneficial Trust Ltd. ... 1 21%
B remar Holdings Ltd. 12i%
Brit Bank of Mid. East 11}%
■ Brown Shipley 12 %
Canada Penn't Trust... 12 %
Castle Court Trust Ltd. 12 %
Cavendish G'ty Tst Ltd. 13 %
Cayzer Ltd 11}%
Cedar Holdings 12 %
■ Charterhouse JapheL.. 11}%
Choulartons 12}%
Citibank Savings ffl2 %
Clydesdale Bank 11}%
C E. Coates 12*%
Comm. Bk. of N. East 11*%
Consolidated Credits... 11*%
Co-operative Bank *11}%
Corinthian Secs 11*%
The Cyprus Popular Bk. 11}%
Duncan Lawrie 11}%
EagU Trust 11*%
E.T. Trust 11}%
Exeter Trust Ltd. 12}%
First Nat- Fin. Corp.... 14}%
First Nat. Secs. Ltd.... 14 %
Grin dl ays Bank *11}%
i Guinness Mahon. 11}%
iBambros Bank 11}%
Hargreave Secs. Ltd — 11}%
Heritable & Gen. Trust 11}%
I Hill Samuel £U}%
C. Hoare & Co. ; fU}%
Hongkong & Shanghai 11}%
Kingsnorth Trust Ltd. 13 %
Knowslev & Co. Ltd. ...- 12 %
Lloyds Bank Il}%
Mall inhall Limited ... 11}%
Edward Manson & Co. 13 %
Midland Bank 11J%
Samuel Montagu 11}%
I Morgan Grenfell 11}%
National Westminster 11}%
Norwich. General Trust Zf*%
P. S. Refson & Co 11}%
Roxburghe Guarantee 12 %
Slavenburg's Bank 11*%
Standard Chartered ... ;11}%
Trade Dev. Bank ll}%
Trustee Savings Bank 111%
TCB 11}%
United Bank of Kuwait 11}%
Volkskas Inti. Ltd. ... llj%
Whiteaway Laidlaw ... 12 %
Williams & Glyn's ... Il}%
Wintrust Secs. Ltd. ... 11*%
Yorkshire Bank 11}%
■ Members of the Accepting Houses
Committee.
• 7 -day deposits 8.5V.. 1 month
8.75?.. Short form £8.000/12 month
11.1%.
t 7-day deposits on sums of: under
C10.000 8>j%. CIO.OOO up M
£50.000 sv;.. £50.000 and over
' 107..
Exeter TruFt Ltd. 12}% * £" iBptnns f1 - 000 ” ntS
First Nat- Fin. Corp.... 14}% „ 2l -dey deposits over £1.000 9*i%.
S Demand deposits 8V.1.
Robert Fraser 12}% t Mortgage baae rate.
RH GROUP ACQUIRES RIT AND NORTHERN
MERSEY TRUCKING OFFERS FOR RIT
The RH Group, the inter- Acceptances of the reewn-
natiorrai transport and ancillary mended offers made by RIT and
services group of companies, has Northern (formerly Great
acquired a majority shareholding Northern Investment Trust) for
in Liverpool-based Mersey the whole of tire fully paid share
Trucking. The transaction values capital of RIT not already
Mersey Trucking at over £lm. owned by RIT and Northern
U.S.$50,000,000
CAISSE CENTRALE DE
COOPERATION ECONOMIQUE
The activities of the two com- have been received as follows:
complementary- Acceptances
Mersey Trucking has traffic i36 p 441J52 ordinary
respect
worldwide with specialist ser- (po.003 per cent of the shares
vices to UK destinations indud- offered for): acceptances in
ing the Channel Islands, the Isle respect of 22,740,192 deferred
Floating rate notes due 1998
Unconditionally guaranteed by the
Republic of France
tstC
of Man and Northern Ireland shares (90-003 per cent of tbe
whereas RH Group specialises in shares offered for): acceptances
trailer services to Scandinavia in respect ot 632,509 3.5 per cent
and continental Europe.
cumulative preference
Following the acquisition, RH 93.52 per cent of tbe shares
Group intends to increase its offered for): acceptances in
worldwide shipping and air- respect of 570.207 44 per cent
freight interests as well as cumulative preference shares
expanding in Liverpool and at (94J24 per cent of tbe shares
its other UK locations.
offered for).
In accordance with the conditions of the Notes,
notice is hereby given that for the six-month period
9th August 1982 to 9th February 19S3 (1S4 days)
the notes will carry an interest rate of 132% P- 3 -
Relevant interest payments will be as follows :
Notes of US$1,000 US$69.64 per coupon
CREDIT LYONNAIS (London Branch)
Agent Bank
PRITCHARD SERVICES
As agreed at the general
WBLKES-PCA DATA
Contracts bave been completed
meeting of November 11 1980, whereby Wllkes-PCA Data
Pritchard Services Group ^ has Supplies has disposed of its trade
EUROBONDS
national, that company having accessories, stock and fixed
exceeded the stipulated profit ***>& to Date Efficiency for
for two years to April 24 1982.
Pritchard Services Group of
£196.000 cash.
PCA incurred a loss of £254,000
America, has issued 3,462 new in 1981 and has continued to
shares to Mr G A CrothaU, rep- trade unprofltabiy in the current
The Association of International Bond Dealers Quotations and
Yields appears monthly In the financial Times
It will be published on the following dates:
1982
resenting a 5.36 per cent holding year. The disposal is expected to
in that subsidiary for a consid- improve the liquidity and profit-
e ration of S2fi5ra.
ability of the group.
MONDAY 16th AUGUST
WEDNESDAY 13th OCTOBER
TUESDAY 14th DECEMBER
TUESDAY 14th SEPTEMBER
THURSDAY 11th NOVEMBER
SHARE STAKES
UKO International — Consult Kuwait Investment Office bolds
International has acquired an interest in 4.8m ordinary
150.000 shares, increasing its (5.99 per cent),
holding to 1,743,649 (12.41 per Scottish Heritable
There is a limited amount of advertising space available each month
If your company is interested in taking advantage of
this offer please contact:
issue since made t Tax ties, s Scrip cant of issued ordinary capital),
issue smee made. 1 Forecast. .
Director Alexander
Trust—
Cochrane
taut
ft
Latest
. Renunc.
1982
?
^ S a
P
.Is
High
Low
180
Nil
! 50pm
; iso
< 47pm’ Automated Security 10p M ...
' 180 iBank Leumi (UK) £1.
i tlo m ::::::
170
F.P.
'13/5 24/8
100
Nil
40pm
35pm *f BorRe/ey Exploration £!„.■
| 117 Blundell-Permoglaze„
[ 38pm
103
FJ*.
I 6(8 17/9
122
l 119 :
73
25 .
F.P.
F.P.
1 2/8 17/9
88/7 5/9
84 :
28k,
80 Goal PeL 5p
22 jenks A Cartel 1
84
! 22 -2
35
FJ*.
30/7 2019
81
73 Minster Assets.
1 77
BO
F.P,
24/6 13/8
62
52 | Press twin.) lOp...
61
219
F.P.
6/7 13/8
285
269 Sketch ley.
282 -1
M. J. H. Nightingale & Co. Limited
Dundonian — Director D. A. disposed of a total
Brooks has sold 25,000 ordinary 1^400 ordinary jn respect
THE FINANCIAL ADVERTISEMENT DEPARTMENT
on 01-248 8000 Ext 3254 or 3389
shares on behalf of his wife.
Bfoben Group — The London
of he and bis wife, reducing
the holding to 814,000 shares
(10.175 per cent), and 15.000
' : . _
27/28 Lovat Lane London EC3R 8EB
Telephone 01-621 1212
Trust Company has disposed of shares (0.1S75 per cent) held as
2m shares and now hoids 6m trustee. Director Hugh Martin
( 10 *8 percent of issued share McMaster has disposed of 205.000
moo’s
capitalisation
Company
RmundfttlOD data usually last day lor dealing free of stamp duty, b Figures
*. based on prospectus estimate, d Dividend rata paid or payable on pan of
Z- capital: cover baaed on dividend on full capital, g Assumed dividend and yield.
~r j indicated dividend: cover relates to previous dividend. P/E redo based an latest
'■ annual earnings, u Forecast dividend: cover based on previous year's earnings.
' F Dividends and yield based on prospectus or other official estimates for 1983.
Q Gross, T Figures assumed. ® Figures or report owalied. t Cover allows lor
conversion ol shares not now ranking lor dividend or ranking only tor restricted ,
'dividends. 5 Placing price, p Pence unless otherwise indicated. Y Issued by
under. B Offered to holders of ordinary shares as a “rights." *• Issued by way
ol capitalisation. 5S Reintroduced. 11 Issued in connocoon with reorganisation
merger or tafca-ovar. |M introduction. □ Issued to former preference holders.
■ Allotment letters (or fully-paid), m Provisional or parttr-aaid allotment fetters.
' * With warrants, tt Dealings under special Rule. £• Unlisted Securities
Market, it London Listing, t Effcrtlvu issue price alrer scrip, f Formerly
dealt in under Rule 163(3) (e). tt Unit comprising five ordinary and three
Cap. shares- F Issued Iron as an endriemonr id ordinary holders.
Ass. Bril. Ind. Ord ... 126
Ass. Brit. Ind. CULS... 136
Airsorung Group 70
Armitagt & Rhodes.. 44
Bardon Hill 228
CCL llpc Corv. Pref.... 11 2
Cindico Group 255
Deborah Sefvicea 69
Frank Horsell 135
Frederick Parker 7?
George Blair 53
Ind. Precision Castings 98
Isis Conv. Pref 113
Jackson Group 110
James Burrough 131
Robert -tonkins 206
Scnmons ’’A” 82
Torday & Carlisle ISO
Unilock Holdings 21
Walter Alexander 84
W. S. Yea iq> 2SO
Change Gross Yield Fully
Price an week div.(p) % Actual taxed
capital I. The shares were placed
by brokers, Panmure Gordon.
ordinary in respeot of he
and his wife, reducing the hold-
5.1 11.5 14.2
7.4 — —
8.7 8.0 13.7
9.6 3.7 B.3
Davenports Brewery Holdings ing to 41,400 shares (05175 per
— Foflowing further market pur- cent). ■ • • ■
Wolverhampton
-The board bas author-
Dudley Breweries holds 759,750 ised the issue of 55,556 OTdinaxy
THE TRING HALL
USM INDEX
127 J (—0.6)
Close of business 6/8/82
Tel: 61-638 1591
BASE DATE 10/11/80 100
LADBR0KE INDEX
548-553 (—8)
16.7 14.0 — —
26A 10.0 10.7 12.0
ordinary shares (9.4 per cent). to D. S. Barber, yhairTg an, under
6.0 8.7
7.9 5.B
Peter Black Holdings— The tbe terms of tbe company’s
church commissioners holds share option scheme. Tbe
310,000 ordinary shares (less ordinary shareholding of' Mr
7.3 7.4
15.7 13.9
7.5 e.s
9.6 7J
20 0 9 7
5.7 70
11.4 7.6
0.46 2.2
39 70
9.6 10.7
than 5 per cent).
Montagu Boston Investment
Trust— -The Electrical Contra c-
tractors- Association holds
Barber total 1.084,756 shares
(5.78 per cent).
Strand Diffusion — Director Mr
C. R. P. Stoner has disposed of
FINANCE FOR INDUSTRY TERM DEPOSITS.
D^^srf^LODa^oo 0 accepted for&od terms of 3-10 years.
9 7 2 3 32.7
70 10.6 12.8
7.6 fi-7 11.5
1,325.000 ordinary (1355 per 1.114,592 ordinary shares in
respect of his wife, reducing tbe
RHP Group — Norwich Union holding to 2m (A34 per cent).
5.5 0.8
5.5 13.1
PricoB now available an Preeial page 48146.
Insurance Group's interest in
the ordinary shares now
amounts to less than 5 per cent
of the issued capital.
Capital and Counties — The
Allied Plant Group— Mr M- R.
Heathcote has disposed of a
further 50,000 ordinary lOp
shares, reducing his bolding to
100.000.
20/8/82
Terms (ye ars) 3 4 5 $ 7 8 $ H>
Qvi'tkttaST % 11} Ilf 12 12} 12i 12* 12* 122
U<P<^£oami&rtberiQE9rtiu5qnfix>mUtelivasurei;l^uicc&c
Industry pic, 91 ^Paterioo Rd., London SEl 8XP (01-9287822, Ert-367),
payable to “Bank of Engjand, at EFT EH
FI » telxMng company falCFCandFCl
l
i
K| diarit,
0141 June j;;,
I.
J. W,
* •
i .=
? :
i 4
UTES
1,000
ME DE
ONOMtil
kin
suoi *>> lLi *
Itti
£ ■;
DS
«-* • -<
»’ ■-
■•••' 4 • ■
.n(S:
iA*
n | * -4
? •••
••a *■••'
\
Financial Times Monday August 9 1982
•s.
Companies and Markets
INTERNATIONAL CAPITAL MARKETS
17 '
U-S. BANK CDS
Continental Illinois
shakes up ‘the run’
CONTINENTAL ILLINOIS' de-
cision to drop out of the top
quality certificate of deposit
market because of its troubles
with the failed Peon Square
Bank has focussed attention on
this relatively obscure but im-
portant bank funding source
which was plunged into turmoil
by recent events.
To boost their deposits, all
In the case of Continental,
by far the worst -shock to hit
the run, trading seized up al
together because demand for
the bank’s CD’s evaporated com-
pletely. For a while, traders
say, the market was in chaos,
and the only solution was for
Continental voluntarily to with-
draw, which it did.
For Continental, it was a
major U.S. banks take in large setback, but at least its
amounts of wholesale funds in
exchange for certificates which
denote the amount of the de-
posit, its maturity and the in-
terest payable.. A typical . CD
might be for $lm with a matur-
ity up to six months. Most CD’s
are held by the depositors. But
billions of dollars worth are al-
so traded in active secondary
markets on both Wall Street
and the Euromarkets.
The yield on CD’s
can vary
Banks on
'Assets at
‘‘the run ”
end 1981
$bn
Bank of America
121
Citicorp
119 .
Chase Manhattan
78
Manufacture re Hanover
59
Morgan Guaranty
54
(Continental Illinois
47)
Chemical Bank
45
Bankers Trust
34
Security Pacific
33
Fret Chicago
33
CD’s started trading again, al-
beit stickily. Traders say. Con-
tinental now has to pay 1 per
cent to 2 per cent more than
its erstwhile peers, and dealers
are nervous because there is
a Mg inventory of Continental
CD’s overhanging the market.
This extra cost is extremely
burdensome for Continental
which reties heavily on bought
funds, and there are doubts as
to whether it will be able to
roH over CD’s as they mature.
Continental has not denied
that its funding costs have gone
up, but Mr Donald Miller, the
vice-chairman, claimed last
week .that the bank bad been
able to shift funding into other
markets where it had less
trouble, such as the inter-bank
market Continental also says
it hopes to get back- into the
run once its problems are over.
Even so, there Is a view on
Wall Street that the reaction to
Continental's losses has been
overdone. The bank is plainly
not about to go broke, and some
dealers say Continental paper,.
INTERNATIONAL BONDS
Sudden loss of appeal for warrants
CREDITS
greatly depending on the' with.its high yields, is an attxac-
quality of the issuing bank. But - tive inves tmen t.
a convention has grown up that
CD's from the 10 largest banks
in the ILS- enjoy a special
status, partly because only they
are eligible for delivery under
CD futures contracts. These are
traded in an exclusive secon-
dary market nicknamed “the
run ” which consists of the
banks themselves and some two
dozen top Wall Street dealers.
The key feature of .the market
is that CD’s are traded on a
Continental is not the only
bank to have suffered knocks
of course, and dealers say that
some “ tiering ’’ is evident
among the zeanain&Dg nine when
they sell their CD’s outside the
run to individual depositors.
Only three banks appear to
attract top rates now. They are
Bank of America. Morgan
Gmaranty and Manufacturers
Hanover, all of which either
have good earnings records or
“no-name” basis: since all the. low loan losses. The second tier
banks are considered to be tOD
quality, their paper is inter-
changeable. and dealers must
be ready to accept whatever
bank's paper is offered to them
in a trade.
The run works well so long
as all the top 10 banks live up
to their name. But the moment
one of them gets into trouble,
the whole market is liable to
weaken because traders dis-
count the possibility that they
will be landed with die troubled
bank's paper.
consists of banks who are build-
ing up top quality reputations:
Chemical Bank, Bankers Trust
and Secarity Pacific.
The third consists of banks
with patchy records or an excep-
tionally voracious appetite for
funds: Citicorp. First Chicago
and Chase Manhattan. Chase is
probably the weakest given its
recent problems with Diysdale
Securities and Penn Square,
“ WE DID heft realise the panic
content of warrants. The under-
writers and investors just
stopped buying."
This was the lament of one
new issue manager who admitted
10 losing. “a lot of money” as
the Eurodollar bond market’s
sentiment turned sharply
against the spate of new
warrants— options to buy bonds
later at a fixed coupon.
Warrants are sometimes the
darling of the market — an
innovative method for investors
to speculate on a future decline
in interest rate levels. They
work in the following manner:
the investor buys a warrant
which is exercisable in a set
period, say. two or three years.
The coupon is set and the
warrant price is a negligible
amount, say $20 or $30 for each
option to purchase a $1,000
nominal Eurobond. If interest
rates decline to below the
coupon specified with The
warrant, then the overall pur-
chase price of the bond— -the
$1,000 plus the warrant price of
$20 or $30 — may provide an
attractive yield above prevailing
rates.
But last week saw heavy sell-
ing and falling prices on a
number of new warrants which
came with bonds for Du Pont,
Xerox. Manufacturers Hanover
Trust and other issuers.
The problems developed in
the middle of last week after
the launch of six uew bond-plus
warrant deals. When IBM came
to Europe to sell $100m of 132
per cent bonds 20 days ago. it
also offered warrants priced at
$25 to purchase .13 per cent
1087 paper. These did well,
trading above $40 at one stage
before settling at a more modest
6 month Enro-currency interest rates
-M-
Jul
1982
D-MARK
1982
Aug
premium price of $31 on Fri-
day.
But IBM spawned imitators
of lesser quality. New issue
managers continued, however,
to price the warrants at quality
prices. In the wake of $2.Sbn
of new Eurodollar paper over
the past fortnight the market
became increasingly selective
and sluggish and warrants lost
their appeal. Prices came
tumbling down below (heir
initial levels.
Du Pont’s S3S warrants, for
example, to buy 13} per cent
1989 paper fell to $28 last week
and many Eurobond houses
dumped the warrants in a panic,
thus losing sizeable amounts of
money.
Mr Hansjoerg Rudloff, deputy
chairman of Credit Suisse First
Boston, criticised on Friday
managers who priced warrants
too high and then saw them sold
at knock-down prices. “ The
lead-managers misjudged a con-
cept”
Mr RudlofFs main complaint
was that prices were set too
high and there was not enough
room for “ upside potential ** —
the prospect of capital appre-
ciation from the warrant issue
price. He even included the
Du Pont deal in his remarks,
which CSFB had helped to lead-
m an age.
The losses of various mana-
gers increased as warrant issue
prices dropped lower last week.
Du Font's warrants were fol-
lowed by Xerox $30 warrants
to buy 13} per cent 1987 paper.
By Friday Xerox warrant price
was $18. Manufacturers Han-
over warrants opened at $20 on
Thursday and fell to $15 in 24
hours.
At these levels the warrants
were beginning to attract some
bargain hunters L t*» For the
managers who splattered the
market wish cheap warrants,
however, the damage was
already done.
Elsewhere in the Eurodollar
market, the heavy load of new
issues led to some indigestion.
The warrant upset aiso affected
the accompanying bonds,
Du Font’s for example, traded
at a discount of more than 2
per cent and sold slowly.
Eurocurrency deposit rates
nudged upward as well and this
made dealers nervous. The mar-
ket was still making money by
holding onto bond inventories at
relatively cheap overnight
financing costs-— the pheno-
menon known as positive carry
— but some inventories seemed
rather heavy as the week closed,
according to dealers.
Among last week's Issues was
a successful $300m 14* per cent
1989 Eurobond for Deutsche
Bank, guaranteed fay Deutsche
Bank Luxembourg and led by
Deutsche, CSFB and Merrill
Lynch.
The issue involves an interest-
rate swap under which Bank of
America, Credit Suisse and
Merrill Lynch, as counter-
parties, pay the 14} per cent
Deutsche Bank coupon. In
return Deutsche takes over
floating rate debt and ends up
paying below the London inter-
bank offered rate.
The swap counter-parties
either desire a fixed 14* per
cent rate or manage to pass
on the funds with an additional
spread to their clients. Deutsche
Bank meanwhile, refinances
floating rate credits granted
by its Luxembourg subsidiary.
Mexico takes ‘only
dignified alternative’
Alan Friedman
•“THE ONLY dignified alterna-
tive in this difficult moment."
With these words Sr Jesus
Silva Herzog, Mexico’s finance
minister, spoke of the decision
to institute a two-tier foreign
exchange system last week:
The result of Mexico’s deci-
sion. came swiftly — a rapid
3Q per cent depreciation of the
peso against the U.S. dollar.
The peso's fail was the second
this year for a total depreda-
tion of more than 60 per cent
Limitations of foreign credit
available to Mexico had led to
unsustainable pressures on the
peso. Sr Silva Herzog said.
In London and New York, as
the dust began to settle,
bankers reckoned the Mexican
move would accelerate the rate
at which spreads on. its foreign
currency loans will rise. “The
credit image of Mexico is not
going to improve as a result of
this rwo-tier package," said one
expert on Mexican finance.
What will Mexico's deepen-
ing financial problems mean in
the Eurocredit market? The
consensus view appears to be
that paying higher spreads on
Mexican credits is no longer
the only answer — bankers want
reassurances that the situation
will stabilise.
In Venezuela meanwhile.
Bankers Trust said on Friday
it did not have the mandate for
a $5 00m five-year credit for
Banco Industrial de Vene-
zuela. BIV is reluctant to pay
more than 1 per cent over
Libor.
Bids on the $500m credit for
EDELCA and CADAFE, the
state electricity utilities, are
said to contain spreads rang-
CURRENT INTERNATIONAL BOND ISSUES
David LasceUes
Borrowers
Amount
m.
Maturity
Av. life
yean
Coupon
Price
Lead manager Offer yield
%
Borrowers
Amount
m.
Maturity
Av. life
yean
Coupon
Price
Lead manager
Offer yield
%
U.5. DOLLARS
D-MARKS
Telmexf
SO
1997
15
m
TOO
CSFB, Merrill Lynch
18350
Swed. Export Credit];
TOO
1987
5
1001
West LB
9.435
World BankttJ
300
1987
5
14}
100
Goldman Sachs
14.625
Air Cana da t
100
• 1992
10
9
100 .
Deutsche Bank
9.000
Saskatchewan %
150
1992
10
15
100
CSFB
153)00
Mortgage Bk. of Denmark
100
1992
10
9}
4i
West LB
•
Pac. Gas and Electric
60
1990
8
144
*
CSFB
»
SWISS FRANCS
Am. Natural Resources'^
SO
1989
7
15}
100
Goldman Sachs
15-375
Daikin Kogyo**1!t
50
1987
’ —
100
CS
6.875
First Chicago Nat. Bk.tt
TOO
1994
12
514-
TOO
Salomon Bros.
—
Sankyo Seikf**§$
20
1987
—
6s
100
SBC
6J50
Du Pont
200
1989
7
Mi '
100
Morgan Gty_ CSFB,
Mlnebea Co.§t
TOO
1992
—
100
Bank Hofmann
6J>00
Morgan Stanley
14.125
Sumitomo Metal}:
100
1992
—
6}
1004
SBC
6.680
Sperry Corp4
100
1989
7
15
100
Blyth Eastman Paine
Fairchild Inds.**t
60
1987
—
a
100
UBS
6.87S
Webber
15.000
Aichi Machine lnd.**{
20'
1987
'
7}
100
SBC
7.250
Xerorfi
100
1987
5
14
100
Salomon Bros., Goldman
Asian Devt. Bank
100
1992
_
*
•
SBC
7.125
Sachs
14.000
STERLING
Deutsche Bankf
300
1989
7
Mi
100
Deutsche Bank, CSFB,
Prov. of Quebec}:
30
1989
7
Mi
100
SG Warburg
14.500
Merrill Lynch
14050
GUILDERS
-Manufactra. Hanonrft
100
1986
4
13*
100
Goldman Sachs
13.500
Asian Devt. Bank
TOO
1992
8
11
•
ABN, Amro Bank
*
Sthn. Cal. Gaif
50
1989
7
15
100
Morgan Stanley
15.000
EIB**t
75
1987
5
TO
too
Amro Bank
IOjOOO
Blot yet prtcMi. t Final farms. ** Placement. t Floating rata not*. • Minimum. § Convertible, ft Raglataiad with U.S. Securities and Exchange Commiaaion. 4 With warrants. Non; Yield* are calculated on an AIBO basis.
Thh&faarliswmacompltewitkthenquammtsttfduCouxrilcfIheSt(xkExdianze.
U.S. $100,000,000
First Chicago Overseas Finance N.V.
(Incorporated with limited liability in the Netherlands Antilles)
Guaranteed Floating Rate Subordinated Notes Due 1994
Guaranteed on a subordinated basis as to payment of principal and interest by
First Chicago Corporation
(Incorporated in Delaware)
•V.
Salomon Brothers International
S.G.Warfourg&Co. Ltd. .
First Chicago Limited
Bankof Tokyo International
Undtisd
Banque Paribas
Banque Nationale de Paris
County Bank Limited
Deutsche Bank Aktiengesellschaft
Swiss Bank Corporation International
Limited
Thfi Jtotes, issued at 100 per centi have been admitted to the Official list by the Council of The Stock Exchange
tfubjcetonJy to the issue of die tempoiaiy global Note.
JjtiteestwiH be payable on interest payment dates Ming in February Ma% August, and November the first payment
V -* -* • •* .. i
nf c and The Issuer are available in the Extel Statistical Service and copies may be obtained during
rvt: 1 ’ . v".* ‘
.‘SZ'/'-ir-g: s&- -r*v
.:'.T
Cflzenove&Gk
12,Tekenhouse^rd ;
i London EC2R TAN -f
-y<iv^52rr;-
,- y •
This advertisement is issued in compliance with the requirements of the Council of The Stock Exchange.
It does not constitute an offer of r or invitation to the public to subscribe for or to purchase, any securities.
$100,000,000
GMAC Overseas Finance Corporation N.V.
(Incorporated in the Netherlands Antiffesl
14 Vz% NOTES DUE AUGUST 19, 1988
Payment of principal and interest unconditionally guaranteed by
t
mg from } to 1} per cent over
seven years. The mandate
should be awarded within a
fortnight.
Corporation Venezolana de
Fomento (CVF), the develop-
ment agency, has arranged a
$100m one-year credit at * per
cent over Libor through
Rosenthal International, the
Long-Term Credit Bank of
Japan, Bank of Nova Scotia and
eight other banks.
Ecuador is arranging a $200m
one-year credit through E. F.
Hutton, Dai-rcfai Kangyo and
LTCB. Spreads are £ per cent
over Libor for banks taking
$lm to $4m, £ per cent for $5m
to $9m and. } per cent for $10m
or higher.
In Eastern Europe, Yugo-
slavia is due to reply to a
French proposal through
Paribas for a $150m credit.
French banks want to link the
deal to the export of French
goods to Yugoslavia, but Bel-
grade is not very keen to agree.
The Citicorp - co-ordinated
$200m credit for Yugoslavia is
still in the pipeline. U.S. banks
are likely to take the lion’s
share, with Japanese banks
possibly chipping m $50m.
Today sees the signing of
Hungary's S260m club loan led
by Manufacturers Hanover
Trust and tomorrow marks the
latest stage of formal Polish
debt rescheduling talks in
Warsaw. Western bankers are
hoping to resist Poland’s
demand that more than SO per
cent of its 1982 interest pay-
ments of $900m are returned
immediately as fresh trade
credits.
A.F.
airs
if th
iota
ufacl
verj
out
pert
s ha
bur
1 an
seem
war
2©S i
00 e
iakir
■e po
ionof
Lium-
1 a t
mg
neve
1 rol
i Wht
1 allc
inde
i cer
rates
iple i
y. tj
ibout
>ende
t arc
iplom
that
less «
sun
its dc
14
V ■
I
i
i
GENERAL MOTORS ACCEPTANCE CORPORATION
(Incorporated in the State of New 'fork, U.S. A.)
The following have agreed to subscribe for the Notes:
SOCIETE GENERALE
ALGEMENE BANK NEDERLAND N.V.
BANQUE INDOSUEZ
BERLINER HANDELS - UND FRANKFURTER BANK
CREDIT LYONNAIS
DREXEL BURNHAM LAMBERT
Incorporated
LEHMAN BROTHERS KUHN LOEB
International, Inc.
The Notes, in the denomination of U.S. $1,000 Issued at 99% per cent., have been admitted to the Official List by the
Council of The Stock Exchange, subject onlytotheissueofthatemporary Note. Interest is payable annually in arrears on
August 19th, commencing on August 19th, 1983.
Particulars relating to the Notes are available in the Extei Statistical Service and may be obtained during normal business
hours on any weekday {Saturdays excepted) uptoand including August24th,1982 fromthe brokerstotheissue:
? ~ ■ ■' ^ r . -■
.v Vi.' — - fc -
.. ■ *
• - - -N li,.
•* '■ .teW te ! ■ ■■ » * t i ■ a u. u i
Cazenove&Co.,
1 2, Token ho use Yard,
London
EC2R7AN.
August 9th, 1982
— uave Utcy euue low a* Wiiucsaea a majur auouc-turn ny — w w«« niwours n. nr juiaca cciw « Am»rir*ae riivi«lnn nrwinuslv
Bibby they are likely to go for the the Reagan Administration on • THE SiME DARBY GROUP TION has made the following an attorney in the world head- nf th p i-In »' nv'< AtJanHr
— — - time being? ♦+■» I ,_„J_ « ...miu* »«in r Dromotions: Mr Richard T. Moo- P arl 01 tne company s Auanut
Borth the Treasury's $iitm third weight behind a measure to Encik Halim Dahlaa becomes for the company's mining, energy
Brady quarter refunding which not increase taxes by $99bn over the regional director Malaysia, and exploration activities, has
nZTir only put pressure on the next three years. But clearly Encik Halim, who joined the elected president from
?E“! markets bm seSed as e Walt Street does not believed Sime Darby Group iu 1078 as ^ptember D Mr George B.
■ - - “ - " “ -- the development director for the Munroe, chairman and president
F.T.1
F.T. t
F-T. i
: Bard;
- Bibby
- Blue ■
Borth
■. Brady
Broth
Culler
’ Hoovt
1 Intere
Nottir
' Phoen
Rang
• Rcarth
Reed •
Sianda
Turnet
Wage,
Financial Times , Monday A
and Markets
U.5. BONDS
Euphoria turns out
to be short-lived
INTERNATIONAL CAPITAL MARKETS AND COMPANIES
Nuovo Banco Ambrosiano , • i ' y"***x* " I . .
nsont nnens amid controversy S'* low initial cost
■lived °P en i a ™ d controversy semce fr Merrffl L h
nr it r c/tdctJT’O i-H-unli/in - ■ - O' ~
BY RUPERT CORNWELL IN ROME
:: euphoraia S mmout wVve resides °la ^ coSecutive AFTER A weekend of frantic .merest of deposits both Italian Credilo of Switzerland has
f : beeTshortJS AJterreioS Xvseffedfvdl^ activity-, Nuovo Banco Ambro- and foreign of the former Milan petitioned^ the Bahamas
r in® briefly over the ‘ reJem wcekiv Fed funL ra te at aleSi sIano °P ens *** doors for busi " Parent— even though it is not Supreme Lourt for liquidation
■ sharp fall Ui interest rat S above Se 11 per rent d?* nMS "« usual" today, less taking over Banco Ambrosiano of Banco Ambrosiano Overseas.
murker^bM to St rait. The Vi'l &"rve£ J*** ra 1>«" «“ »“ Holding of Lu Jtm bourg. and iB following the N.»«_tok.
gloom and doom again last week tion on Tuesday marked a Banco no of the late other foreign associates. £ iSSmXTS' J ulv
raising new uncertainties over watershed and interest rates Sig Roberto Calvi was P^red . controversy is already start- ® p K . reports from
trading this week. have been stable to slightly in ^“tda^on wita net habili- ing over whether the liquids- JJicki hel,J rcporu 10
failure to meet payments of
~ The°de7eri oration was particu- firaer Tn "thriftematL^Thk ' *ft CTUld reacb L75obn tiSi of Banco Ambrosiano SpA overseas one of
StSS-S ^Mclais sent in by tbs seven ^£SSSSSSSS&
r^ded'inS 0® 6 a wTek dine ii i^te’resT rates' had gone Ambroaano have spent Satur- no alternative. **vikA fn "SmKE* to” thSd
agT Wall Street waTcheering far enough for the time being, day and Sunday w the J07 ? to. ' the £1 JK?d£r& SS
a cut in both the discount rate
and the prime rate.
branches of its predecessor, capital of the old bank would l
Av 3 r*enlt vi»M c in the uraunus m no yicusnadui, (.aptiai ui luc uiu -uus
bond market Sirted' to climbTo- readying the boota for today's ^ve meant shareholders put-
further notice.
Ambrosiano Overseas ran into
nagging doubts over just how cent on Friday compared to
■ ie2ent & monetary* policy *tiie ^13 Jer ito^ThS raised later to up to LJOObn. between I^OObn and L75Qbn iTz Sjth^flfoOm
• Federal Reserve i?p5rsJng. does not auir well for ml tn^SL^SSSfrf Kwed from baiKrilJddE
However, the period ahead ine this week. brace P* 8115 10 boDe fide to cover debts of the whole ,wn wrar ‘ B1H
Friday’s money sironlv figures shareholders of the old group, including liabilities of The Bahamas central bank
did nothine to imnrove the mar- Banco Ambrosiano to subscribe foreign affiliates, the total could suspended the licence of the
US. INTEREST RATES .^STK^TSSmi'S 2 *» *" — fffl li“ «=" JLfiS
Federal Reserve is pursuing: doe
However, the period ahead ing
U.S. INTEREST RATES {%)
Week to Week to
$900m increase was well within I cessor.
L50.000 per share, for a total days after it became dear that
ZV.k July 30 the Fed’s targets, some Wall me meanuipe me bwk « m otto
io 73 tT4S Street economists had been Italy is emphasising that the L2,500bn.
g'ao ioIi7 hoping for a smaller increase — new bank will guarantee the •Meanwb
ii.40 ii.9o or even a slight further decline. ~
1525 ii as Tde rise ' was particularly
iso) ills bothersome because analysts
In the meantime the Bank of of between L2,000bn and Banco Ambrosiano could not
Italy is emphasising that the L2,SOObn. guarantee the borrowings of its
new bank will guarantee the OMeanwhile, Banca Unione di offshore subsidiaries.
By Paul Betts ’in New York
WALL STREET’S attention
will be focused today on
Cities Sendee’s share price
with many leading institu-
tions and investment houses
waiting with apprehension to
see how badly it will be hit
by Gulf Oil’s decision to drop
Its $5bn bid.
Gulf’s decision on Friday
to withdrew its $63 a share
cash and securities hid took
the market by surprise.
Gulf, the country’s sixth
largest oil company, blamed
its decision on opposition to
the merger by the Federal
Trades Commission.
Many Wall Street invest-
ment houses and risk arbi-
trageurs are expected to
suffer severe losses after buy-
ing the shares at between $40
and $60.
On Friday Cities Service’s
shares dropped nearly $7 to
$37} before Gulf’s announce-
ment The stock is now ex-
pected to be battered further
with some brokers forecasting
a decline to a range of be-
tween $34 and $22 a share.
INTERNATIONAL APPOINTMENTS
_ ouuiwu. gaiDiua'i uius. ivstimoiua ■ . - . - « ... _
mm in the waak to Juijr 28 M-i rose ssoom money supply figures are likely
to $4Si Abn. to show a substantial increase,
; ' perhaps S2bn to $3bn for sea-
sonal reasons and that will push
F.T. i should also answer a key ques- close to or over the top of
F.r i ■ tion: Are interest rates merely the Feds target range.
hiccuping on what is
developments were
basically a downward trend? ironic given that last week
Or have they gone as low as witnessed a major about-turn by
Sime Darby
management
changes
group manager insurance Central Intelligence. Admiral ment at the corporate level In
services. He will continue as Inman retired from tbe Navy 1972 and held that position at the
tafiagins director of United earlier this month after 30 years time of his promotion.
Malayan Insurance Bhd, the service. In a move to streamline its
Malayan Insurance Bhd, the
oldest iocaiJy-controIled insur-
„ r> h.c coniainership service in the
ance company in Malaysia and T ; h msjf Caribbean and Central America,
a subsidiary of the Sime Darby ^ U.S.-flag carrier SEA-LAND
f 1 --... QOD d6VeJ opment &DQ 3QIDUllSlrfl~ nr'ntrroi? rKlr* »_ _ _ f^rwinrl 0 %
G p ‘ non of H. J. HEINZ COMPANY. SER^CE^NC. has formed a
• PHELPS DODGE CORPOR- Pittsburgh. He joined Heinz as
the question of tax increases. I has made a number of senior promotions: Mr Richard T. Moo-
The centrepiece last week was The White House threw its I management
appointments. Bek as vice chairman responsible
sss 3rs=a i wmmm asasss
absorb this debt, retail interest *n<* squeezed out potential senior vi« presidents from
was reportedly thin, leaving corporate borrowers. Only H t L ill aiSQ 1oill ju. September 10: Mr a Robert
dealers holding the bulk of the Wm of corporate bonds were boa^'of SlmeCr^Berhad id Durham, Mr Richard W. Pendle-
new paper. sold The calendar this week - rewnsibHitytor sSJ to »> Jr " *** Mr Don S Ias c -
The refundina. first staee. also looks thin. General Motors aSvSpc in Yeariey. Mr Durham is a vice
new paper 3ULVL. 1 lit. LcUCUUdl Ullh WCtTh
The refunding, first stage. als ° looks thin. General Motors
consisted of $6bn of three-year 1S dQWn for a ?200m issue of
1
....
' -ij*. .< / >•?
Darby Group activities . in mr uurnam is a vice
Thailand. Mr F. C. Whiting, P"*Went aod
>cU™s
notes which went for a yield three-year notes, part of the ear current the exeoutive vic»- Phelps Dodge International Cor-
of 13.17 per cent This was maoufteturert massive multi- president of Sime Darby Inter- P^atwii. a subsidiary ^ which
significantly lower than the billion doUar financing pro- national Tire Company (Siditco) iS??ILj ord S
yields achieved at the previous granwne for this year. w wn ifvnAint«i ««rioti3i manufacturing interests. Mr
af-s =“!^pS al A'
refunding in May and evidently Further indications at the director. Philippines. H« was f eE al officer of the comn^v
not high enough to attract state of the U.S. economy will previously with the Monsanto cmef legal officer of the company,
strong investor interest. There come tixis Friday with the pro- Company in Missouri. Eaclk pin • Mr Bobby R. Inman, a
was a similar slorv with the ducer price index which is ®*ertean has been made Sime retired U.S. Navy Admiral, has
Mr George C Greer
part of the company s Atlantic
Group. The company is now
structured into three primary
areas of operation: the Atlantic.
Pacific and Americas. Mr David
J. Tolan. named Americas Divi-
sion executive vice president,
will head the new operating arm.
He was executive vice president,
human resources. Sea-Land Indus-
tries, Inc.
*
• Mr David L. Bowler.
CONOCO (UK)'s Northern
operations manager, has been
appointed vice president and
general .manager of operations
with the Dubai Petroleum Com-
pany. a wholly-owned Conoco
subsidiary.
• DtEBOLD INCORPORATED
has elected seven executives to
newly created titles within the
BY PAUL TAYLOR IN NEW YORK
MERRILL LYNCH, the Wall
Street investment . .firm, is
launching novel deep dis-
counted zero coupon notes
today an the U.S. and Europe
with a total face value of
$2.56bn.
The new issue, called ,l Tigrs ”
— Treasury Investment Growth
Receipts — will be sold to institu-
tional and private investors in
two forms, serial and callable.
Mr Joseph Wilson, managing
director of Merrill Lynch's
White Weld capital markets
group, said the new : issues
would provide a predetermined
income for an initial low cost.
Under the system the invest-
ment film will buy $500m of
U.S. Treasury long bonds . and
deposit them with Manufac-
turers Hanover Bank.
It will then issue Tigr deposit
receipts against -the interest and
principal due. Of the $2.56bn .
in Tigrs Which" MeniR Lynch
plans .to seH, $l.72bn will - be -!
in serial Hgre with. 49 maturity ■
dates matching interest pay-
meats - on. tiie Treasury long
bond between -this November
and November 2006. /
The remaining $S50m will be '
sold III tile form of callable
Tigrs reflecting the fact that the
Treasury long bond Is also cafi. '
able in the last five years. The ;
purchaser jvill be entitled io _
receive a semi-oonnal Interest
paymnt commencing, in May
2007 until November 2011 on
the principal portion which he,
purchases. . . f
The two issues which are i
expected to be priced some* :
time this week to yield between
z and U points below market
yields, depending upon maturi-
ties. On this basis the longer
maturity Tigr would yield about -
12 i per cent based upon cur- i .
rent yields.
vice president are: Mr Robert P.
Barone, automatic banking sys-
tems; Mr Louis Y. Bochins,
manufacturing: Mr Joseph K.
Caron, bank products: Mr. Robert
JVL Yopko, installation and tech-
nical services. The above will
also be members of the corpora-
tion’s planning and strategy
committee.
• Mr William Hobbs, corporate
vice-president and chief financial
was a similar story with the ducer price index which is ®»enean nas ueen made bime retired U.S. Navy Admiral, has corporation. Elected senior vice
S5bn of 10-vear notes which expected to show a large gain Darby Group treasurer. He been ele cted to the board of quarters law department in 1959. president are: Mr Harry E. Parr,
yielded. 13 89 per cenL By the and the industrial production ioiOTd the Sime Darby Group WESTERN UNION CORPORA- He later served in marketing Jr„ finance and chief adminis-
Sld Si «S tiiese «££ Index for July: P asassisunt group treasurer in TION and its principal sub- management positions with H. J. trative officer Mr Walter Crow.
“ y,e y 1978 and became group finance sidiary. THE WESTERN UNION Heinz Company Ltd. the UK com- security products group: Mr
a* tiff + , „ . p a «| Tawlnr mana 5 er ^ August 1980. Mr TELEGRAPH COMPANY. For- pany's subsidiary. He was named Robert W. Mahoney, electronc
At the same tune the Fed r<iui Asayiur J. W. Eu has been appointed raeriy the deputy director of direcior-organisation develop- products groups. Elected group
Mr William Hobbs
officer of KAISER ALUMINUM
AND CHEMICAL CORPORA-
TION. will assume new responsi-
bilities as senior vice-president
and assistant to the chairman.
Succeeding Mr Hobbs as chief
financial officer is Mr Edward M. V
Quin nan. Mr Quinnan has also j
been elected a corporate vice- j
president. - f.
• AIRBUS INDUSTRIE of j
■North America (AINA) has,
made Mr Alan S. Boyd its new
chairman and president Mr 1
Boyd was the first U.S. Secretary >
of Transportation and chairman \
of the Civil Aeronautics Board. >
He led American negotiating, i .
teams working on interaational }
air services agreements. Since j
1978 he had been chairman and |
president of National Railways \
Passenger Corporation. Amtrak. I
AINA is a wholly-owned sub- j
sidiary of Airbus Industrie- j
• Mr Daniel P. Weedock has I
been elected a senior vice presl - !
dent of INTERNATIONAL' 1
TELEPHONE AND TELE- 1
GRAPH CORPORATION. Mr
Weadock has also been appointed
deputy group executive Europe :
aiNi executive vice president. -
operations-lTT Europe. Incor-
porated. Mr Weadock was
executive assistant to the i
presideot-ITT Europe. He has !
also served as president of ITT (
Africa and the Middle East and '
before that was director of',
operations for the AME group. {
• Mr Joseph M. Kelly has ix^ ;
come co-partner and executive J
vice-president of CUSTOM
AUDIENCE CONSULTANTS i
(CAC>. a Washington-based;
broadcasting research firm.
T SA\
day, d
traliau
side w
about i
7old r
Wester
traiia
t r.3 otii
IXM'Jtjf
rohriei
it up.”
Sure
Labor
to new-
investo
to powc
ins of :
Thp .
by the I
Govern!
big Jat
in the
Pancont
and Gel
They’-
week,
claimed
rial rep.
The No:
partmen
sutrgeste
Jabiluka
prospecr
potenlia
has been
tic to sa
It was
Aus trail;
uranium
priced at
pound i
prices ar
this in i
like remj
E rears io
JahiJul.
racts at
the part
arrange a
of Gnren
mining p
not meai
«ts unat
in the sl
M r Tor
’anconric
trisingly,
ommentE
le mainr
ahihika's
ointing ■
i a posit
jcurify
Jatepic i
While
ibtiuka
»!e to a
ng-term
ight be
w dolla
sure &
an scrat
ers in
trket.
5igmfica
itinenta.
ich of
Europ
intries i
nevitahJ
.P-0?sH:
FT INTERNATIONAL BOND SERVICE
50
years of industrial
financing.
SUMMARY OF BALANCE SHEET AS AT MARCH 31, 1982
(amounts in million U.S. dollars)
rS LIABILITIES
ASSETS
Loans S 11.585
Securities received for Joans assigned
to Cassa Depositi e Prestiti “ 864
Holdings “ 212
Holdings in GEPf, under Art 6, Law No. 1S4.
22 March 1971 “ 441
Cash and due from banks and other
institutions u 686'
Securities and bankers’ acceptances * 755
Other assets “ 1,822
Commitments and contra accounts
$ 16365
2 13341
$ 29,606
Paid-up capital
Legal reserves and various
allowances
Funding
inc. Bonds $ 8,327
Cert, of deposit “ 412
Government allocations under
Art 6, Law No. 184, 22 March 1971
Amounts to be disbursed
Other liabilities
Net income for the financial year
Commitments and contra accounts
“ 827
“ 12,924
$ 16365
» 13341
$29,606
The Balance Sheet as at March 3 1 . 1982, has been examined by Arthur Andersen & Co. s. n.c. Copies of theAnnuaJ Report are
available at the IMI Head Office and, since next September, at the Representative Offices abroad.
The Meeting of Stockholders held on April 20, 1982, decided to increase I Mi’s capital stock from 500 billion Lire to 1300 billic*
Lire, by means ofa 500 billion Lire bond issue, to be gradually convened during the 1984-1986 period.already fully subscribed.
ISHTUTO MOBUJARE HALIANO
Public Law Credit Institute
Head Office: Viale de IT Arte, 25 - ROME (Italy)
Representative Offices abroad: LONDON EC 4R QBE. 8 Laurence Poimtney Hill - WASHINGTON 20036 D C. 21 Diq»rrf Coriw.'nift R imim -BPrn nrTjre
1040, S Square do Meeds. BTE 1 - MEXICO OT7 CSS00 DS. Paseo de la Relama. 195. Desp&dn 1301 - ZURICH 8022 GBnnsdwxasw 3ft PcwfacL
Paid-up capiat 500 bilion Lore - Legal reserves 3365 billion tire - Various allowances: 7563 billiai Lire
Monetary values a US dollars were calculated at the exchange rate of iit 1,322 to the US doflais as al March 31, 1082.
U.S. DOLLAR Change on
STRAIGHTS lmauact Bid Dlhr day wash Yiald
Aatna Lila 15 86/97 ... ISO 10S», 103», -04 -04 13.61
Am m» lot. Fir. 164 92 75 964 1004 -04 +04 16.22
Amex O/S Fin. 144 89 7S *7 974 -0»« +04 14X8
964 1004 -0>, +04 16^2
97 974 — 04 +04 14X8
«iiica u/o rin . os /d •> »» i — wa i+jw
ATT 144 89 400 1Q3>« 1034 -04 -04 13 37
Baker Ini. Fin. 0.0 92... 225
BHP Rnanca 144 89. . 150
Bk. Amar. NT SA 12 87 200
Bk. Montreal 14>, 87 ... 100
Bqua. Indo Suez 15 89 100
Brirlah Col. Hjrd. 144 89 200
British Col. Hyd. 154 92 150
Burroughs Int. 154 88 50
Canada 144 87 750
*25 204 274 —04 0 14.69
ISO 97 974 —04 0 15.39
SOO 924 924 O +0», 14.29
100 K 954 0 +0415.94
100 964 974 -04 0 15.70
SOO 984 994 -04 +04 14.92
50 1014 KH\ 0 +04 14.96
50 1034 1044 0 +0\ 14.56
tO 994 1004 +04 +04 1438
I Canadair 154 87 150 1014 1014 —04 +04 14.91
Canadian Pac. 144 92 75 95 954 +04 +04 15.57
Carolina Power 164 89 60 1044 1054 -04 +04 16.20
CISC 16 87 100 984 904 0 +0416.44
Citicorp O/S 1J 84/92 100 994 1004 -04 -04 14.84
Citicorp O/S 154 85/97 IS 1014 1014 -04 +04 14!s9
CNA 154 97 75
Con. Illinois 154 89 ... 100
Duka Pwr. O/S 154 89 60
Duoonr O/S Cap. 0.0 90 300
ECSC 144 87 (Aonl) ... 80
WT 1014 0 +14 15.60
954 96 -04 -34 16.79
1004 101 -04 +04 15.26
354 364 -04 +04 14.51
99 994 -04 +04 14.91
eiVin or •• tv-b
EIB 154 89 150 1004 1014 -04 +04 15.15
EIB 154 92 100
Eksportfinans 144 89 ... 50
Gen. Elec Credit 0.0 92 400
Gen. Elec. Credit 0.0 93 400
Getty Oil Int. 14 89 .. 125
1004 1004 -04 +04 16.41
984 994 -04 +04 14.73
284 29 -04 -04 13.97
254 254 0 +0413.88
994 ®4 -04 -04 14.0S
GMAC O/S Fin. 16 88 150 1024 1034 -04 +04 15.12
GMAC O/S 154 85/97 100 994 994 -04 -04 15.43
GMAC O/S Fin. 15 89 125 984 100 -04 -04 55.02
GMAC O/S Fin. IS 87 100 994 1004 0 -04 14.94
Gull Canada Ltd 144 92 100 974 384 +04 +04 15.13
Gulf Oil 144 94 175 994100 -04 +04 14.26
Gulf Orl Fin. 0.0 92 ... 300 284 284 -04 -04 1* 0’
125 984 100 -04 -04 55.02
100 994 1004 0 -0414.94
100 974 384 +04 +04 15.13
175 994 100 -04 +04 14.26
, . ------ -- 300 284 284 -04 -041*7"
' Int.-Am. Dv. Bk: 154 87 55 984 994 0 O 15-23
Japan Daw. Bk. 154 87 50 IO44 1044 -04 +04 14.05
New Brunswick 164 89 75 103 1034 -04 -04 13.36
Ontario Hydro 144 89... 150 994 994 -04 +04 14.85."
Pac. Gas 4. El. 154 89 45 103', 104 -04 0 74.53
PhIHrpe Petrol H 89 ... 200 974 98 -04 -0414.50
R.J. Rynlda. O/S 0.0 92 400 Z74 284-04—0414.33
Saakatchewan 16 89 ... 125 1024 1024 -04 -04 15.30
Shall Canada 1*4 92 ... 125 974 974 -04 +04 14.84
Soain 1 54 87 ICO 1004 1014 -04 +04 15.39
Superior O/S Fin. 14 89 125 974 98 -04 +04 14.51
Swed. Exp. Cr 154 89 100 994 994 -04 0 15.34
I wed. Exp. Cr. 1*4 90 100 954 964 -04 O 16.63
Swed. Exp. Cr. 0.0 9* 200 204 204 +04 O 14.71
Texas Eastern 154 89... 60 3004 1014 -04 0 15.49
Union Carbide 144 89 160 1004 1004 -04 -04 14.68
Wells Fargo Int. 15 87 75 994 1004 -04 +04 14.95
1004 1014 -04 +04 15.39
974 98 -04 +0414.51
994 394 -04 0 15.34
954 96*4 -04 O 16.63
204 204 +04 O 14.71
Well* Fargo Int. 15 87 75
World Bank 144 87 . . 500
World Sank 154 88 ... 250
994 1004 -04 +04 14.95
974 984 +04 +0414.91
7004 1014 -04 +04 14.87
DEUTSCw" MARK ^
STRAIGHTS Issued Bid Offer day week Yield
| Amn Dev. Benlt 94 92 ISO 974 384 -04 -04 9.55
Australia 94 91 200 1034 70*4 +04 +04 8.70
Austria 84 92 100 344 954 0 -04 9.16
Barclays O/S In. 84 94 100 3S4 964 0 -04 8.93
Bowater Int. Rn. 84 89 50 96 964 0 +04 9.26
Canada 84 89 200 1014 1024 - 04 -04 8.07
Comp. Tei. Esp. 104 92 100 1004 101 0 0 10.35
Cred. Fancier 8V 92 ... 100 964 964 -04 0 9.32
Danmark 104 S2 100 1024 1024 +04 -04 9 57
F?B fttlV 92 22? 7a * TaT * +<H * + °4 9.67
f 1 ® f* K _ ■■ ■■■„— 100 • 9*4,954 +04 —04 9.18
lnt.-Am. Dew. 8k. 9 92 150 974 974 0 0 937
Nacnl. Financiers 11 90 150 964 974 -04 0 11.56
"°" k 100 984 984 0 +04 8.7S
Philips Lamps 84 92 ... 100 984 994 -04 +04 8 59
Phll.ti Morns R4 90 ... 100 10141014 0 +04 7.95
Quebec 104 92 160 1024 1034 - 04 + 04 9.63
JP » 100 981, lOQr, o +(H , 9J7
SMCF 84 32 .... . 100 964 '964 -04 0 9.19
Tsurnautobahn 9», 94... SO 10241024 0 -04 9.51
ln , 1 - 9 M 100 984 984 0 - 04 9.25
World Renk !», 89 100 1004 1014 -04 -04 9 71
World Bank 84 92 zoo -JRtK+R 0 S.«
Avarage pnca changes... On day 0 on week 0
SW'SS FRANC Change on
STRAIGHTS Issued Bkf Offer day week Yield
Air Canada 54 9 2 .. .. loO 10041054 —04 +04 61$
Asian Dev. Bank 7 82... 100 10)41014 +04 +14 6 7S
£ “ 93 99 1 * +04 +04 7^5
Austraha 6»a 9* 100 1054 1054 +04 +04 5X5
BNP 64 92 100 984 984 0 +<£ 7M
Cse. Nat. I'Ereraia 7 92 100 1004 1004 -04 +04 6^8
CFE-Mekico 8>a 82 50 9«4 95 -04 +24 $JK
Co-op, Denmark 84 92 25 t105 1054 0 -04
Crown Zalferbech 64 92 100 1004 1004 +04 +04 8.57
Eureperat 74 92 100 nm, 1014 +04 +04 7 04
Ind. Fund Finland 6*. 92 30 964 99 +04 +04 e SI
Jatwn Dew. Bank 6 94... 100 1004 1004 -04 -04 5^95
99 99*, +0»4 +0>, 7JBS
1054 1tB>, +04 +04 5^5
984 984 0 +04 7JK
Kobe City 64 92 100
Kemmunlans 74 92 ... 35
Lorrrho Int. Fin. 7 1 , 32 90
Mitsui OSK ff, 02 100
Nafinsa 92 .
100 1014 1014 +04 +04 5.93
35 1004 101 -04 +04 7.13
90 947, B64 D +04 9.25
100 994 994 +0>, +04 6.63
80 934 934 -04 +04 9.28
New Zealand 6 52 TOO 1014 1014 -04 -04 5.81
Philip Morris 64 92 ... 100 10*4 105 +04 +04 5 94
Philip Morris 64 9* ... IDO 10241034 +04 -04 5 89
Philip Morris 64 9* ... 100
RanTa 74 92 80
Sekisui Pre. 54 92 WW To
Soc. Lux. de Cnt. 84 92 80
Sveneka Handels. 64 92 100
Tiroler Was* at 64 9Z 100
Voriribetg Kraft 64 92 50
80 884100 +04 +04 7.78.
70 1037, 'IO44 +04 +04 5^1
80 108 108>, 0 +14 6.81
I0O 884 987.-04 +04 6.93
100 984 964 —04 —04 6.49
50 1084 1024 -04 +04 6.37
Change on
YEN STRAIGHTS lesued , Bid Offer day week Yield
EIB 84 92 ....* IS 974 964 0 “04 8.59
Jm.-Amer. Dev. 84 97 15 10141024 0 0 8.66
Japan Airlines 74 87... * 954 964 0 -0*. 9.03
New Zealand 84 87 15 994 1004 0 0 8.33
World Bank &4 92 20 984 994 +04 +04 8.48
Avenge price changes... On day 0 on week 0
Change on
OTHER STRAIGHTS Issued Bid Offer day week Yield
Bell Canada 16 89 CS... 100 t984 99 0 +04 16.28
Can. Pac. S. 164 89 CS 50 t984 99 0 +04 16-63
Ctd. Fonciar 174 89 CS 30 199 99>, +04 +04 17.25
Gas Metro. 174 90 CS... 20 fB74 984 -04 -0417.68
OKB 164 88 CS 63 tsa»* 994 0 +0418.49
Q. Hyd. 164 89 fM) C* 50 11004 1004 O +04 16.32
Quebec Prow. 164 89 CS 50 11004 100*, +04 +04 16.35
U. Bk. Nwy. 94 90 EUA 18 934 95 0 -04 10.82
Amro Bank 10 87 FI ... 150 10041014 +14 +04 9.74
Bk. Mobs & H. 10 87 Fl 75 . 994 39’, +04 +04 10.08
Eurohme 104 89 Fl 50 ioo>, 1014 0 -04 10.28
IrelBad 104 87 Fl 75 98>, 99 -04 —04 10X2
Phil. Lamps 104 87 Fl... 100 1014 1014 —04 —04 9.81
World Bank 10 87 Fl ... 160 994 994 -04 0 io.15
OKB 14 86 F Fr 400 944 957, +04 +14 16.01
Solway at C. 144 86 PFr 200 944 954 +04 +14 16.65
Beneficial 144 90 E (D) 20 904 914 0 +0 7 , 16.33
BFCE 144 87 C 30 im 101», -04 +04 14.06
BNP 134 91 C 15 954 974 +0\ +W, 14.01 ,
CECA 134 88 C 20 984 »*, -d, +04 13.71 i
Fin. Ex. Cred. 134 88 C 15 984 994 0 -04 14.09
Gen. Elec. Co. 12», 89 t 50 374 984 +04 +14 12.B7
Hiram Walker 1*4 86 t 25 1004 IBIS 0 +0413.95'
Norsk Hydro. 1*4 87 E 30 1014 102 —04 +04 14.00
Privatbanken 144 88 C 12 974 984 0 0 14.9R
Quebec 154 87 £ 35 1024 1034 o +04 14.42
Reed f Nd) NV 164 89 £ 25 1054 1064 . 0 0 15.08
RowsI Tmstcp 1*96 f... 12 994 1004 0 +04 73.78
SDR France 15>- 92 C... 30 10*4 103 -04 +0», 14.9?
Swed. Ex. Cr. 134 86 t 20 »>, 1004 O +04 13.72
Ftirofims 104 87 tuxfr 500 964 974 0 +0411.77
EIB 94 88 LuxFr 600 924 934 0 0 11.48
FLOATING RATE
NOTES Spread Bid Offer C.dte C.epn C.yld
Allied Irish 54 92 04 984 99 15/10 15 69 ISJtg
Bk. of Tokvo 54 91 (D' 04 100 1004 8/12 154 15.21
Bk. Nova Scotia 54 93 04 99 994 29/10 154 15.24
PFr-E 54 m 04
RFCE 54 87 04
Cxi**B Nat. Tele. 54 90 04
CCCE 5*< 20"? 04
mPME 54 92 04
99 994 29/10 154 15.24
9*4 994 28/10 15 15.06
»4 9P», 27/1 14 14.05
954 994 21/10 W4 ’ IS.fM
F54 9"4 11/12. 154 15.55
953, 1004 no/12 is.a* 15,44
Chemirnl NY 54 94 t04 1004 73/9 IS 69 16.69
CISC 54 94 ...
04 ”74 JT74 ifi/i 164
Cont. Illinois 5». 9* ... *04 t*n, 97474/9 ifts,
Credit Aaricola 54 97... 04 *** ««. 2*/9 15 «4 15.57
Credit du Nurd «U, «W... 04
•Credit Ivannais 54 97... 04
954 1004 23/12 16.81 16.83
S94 1004 1/10 16 16.00
Credit ivonnm* 54 94... 04 1fl»», 1WH, 1/1 16.94 16 95
Credit N-t. rn. 9* *04 *»"» 9^4 3/9 is.eg i«>g
Ireland 54 R9/94 04
Kaniellii 54 92 04
Uoede EnroBn 54193 . $04
Lonn Term CreH. pi 92 O’,
O’. 1«t4 W 25/11 1*J. ia.94
04 9R4 954 5/11 15.31 15 37
04 994 1«14 79/10 174 17.13
O’, 991, 100 7B/11 1*4 14.89
J. P. Morgan 54 37 ... S04 SR 7 , M4 12/R 1*4 14 76
Nat. Weal. Fin. 54 91... §04 1«> 100=, 1S/1 154 16 71
New Zealand 54 87 ... 04 99*. 1004 7/10 1$.5ii 15 pn
NfBDM Crerfrr 64 90 . 04 **4 *W». 10/8 15.08 isilfi
ooshora Mining 54 91 o 1 , “»4 in"4 peer i*.ig 14 m
PKhnnken 5 31 —
Scotland Ini. 54 92 04 984 9P4 73'9 15’, ' ic si
Sec. Pacific 54 91 . 04 «*, 1«»4 2am 15 15 ni
Sodete Generals 54 95 04 9*4 »\ i/fl 15 31 ig’wq
Standard Ch»rt. S’, 31 04 904 90419/11 iat, 14 ' K
Sweden 54 89 .. ..04 994 2B/R i* n, -c'...
04 1001, 100*. 17/12 15 bi 15.75
Toronto Domin'n 54 K 04
P*4 994 2G/B i*3i mi
974 8S411/8 764 ifi.73
Average price changes .. On day -O’, on week 0
CDNVlflT I BLE Cnw. Cnv.
BONDS date pries
Ajinomoto 54 96 7/BI 933
Bow Valley inw. 8 95 ... 4/8123 v*
Bridgeatoni Tire 54 35 3/82 470
Canon 64 96 V87+>/sj?
Canon 7 97 7/8ZWJ.V
Chugai Pharm. 74 96 ... 7/82709.6
Fujiteu Fenue 44 96 ...10/BI 5S41
Furukswa Elec. 54 96... 7/81 300
Hitachi Coble 54 96 2/82 516
Hitachi Cred. Cpn. 5 96 7/01 1617
Honda Motor 54 97 3/82 8ai
Kawasaki 54 96 8/81 7*
Matin' 6 96 7/BI MB d
Minolta Camera 5 36 ...10/81826.4
Minoreo 94 97 5/82 8 18
54 96 7/81 21BR
ffKK 64 96... 7/81 i88
Nippon Electric 5 s , 97... z/82 Sdg
Orient Finance 64 97 . . 3/82 1205
Sanyo Electric 5 9$. .. .10/81 652
Sumitomo Elec. 54 97 .. 3/328773
Sumitomo Mot. 54 96... 10/81 296 1
Swiss Bk. Cpn. 64 90 . 9/80 191
Komahlroku 54 88 DM 6/82 GIB
Mitsubishi -H. 6 89 DM 2/82 283
Chg.
Bid Offer day
R1-, S3 -04
B* 1 ' 9P. 0
»’t 884 +14
884 WP, -gt.
P§4 1004 0
1»»« 1094 +24
7S4 TP, +14
a* 904 -rw. .
B04 R14 -04
704 72J, +13,
*34 8*4 +04
83 6*4 +04
W e +04
W «M4 +0»,
55 -04
SB4 70S 0
7*4 764 +04 -
834 854 0
864 874 +04
814 624 +14
W4 *54 +74
604 624 +04
73 75 0
1024 1034 +04
864 88 s , -O’, ;
Average price change*... On day 0 on week .+0*,
O The Financial Times Lid. 1982. Reproduction in whole
* iorTn nDl ootmined without wrinaa
consent. Data supplied by DATastream International
EUROBOND TURNOVER
{nominal value in 5m)
Cure*
Ccdcl dear
U.S. $ bonds
Last week 3,215.1 8,968.2
Previous -week 6.863.4 10.153.9
Other bonds
Last week 777.1 649.2
Previous week 705.1 435JI
* No information available —
previous day’s price.
t Only one market maker
supplied a price.
STRAIGHT BONDS: The yield
is the yield to redemption of
the mid-price: the amount issued
is in millions of currency uniis
except for Yen bonds where it is
in billions. Change on week=
Change over price a week earlier.
FLOATING RATE NOTES:
Denominated in dollars unless
otherwise indicated. Coupon
shown is minimum. C.dte =Date
next coupon becomes effective.
Spread =JUargin above six-moDth
offered rate (t three- month:
5 above mean rate) for U.S.
dollars. C.epn = The currenr
coupon. Gyld = The current
yield.
CONVERTIBLE BONDS: De-
nominated in dollars unless
otherwise indicated. Chg. day =
Change on day. Cnv. date— First
date for conversion into share*.
Cnv. price =r Nominal amount of
bond per share expressed in
currency of share at conversion
rate fixed -at issue. Prem = Per-
centage premium of the current
effective price of acquiring
shar&s via the bond over the
mosi recent price of the shares.
The list shows ihe 200 latest
interaational bonds for which
an adequate secondary market
exists. The prices over the past
week were supplied by: Krediet-
bank NY; Credit Commercial de
France; Credit Lyonnais; Com-
merzbank AG; Deutsche Bank
AG; Westdeutscbe -Landesbank
Girozentraic: Banque General*
du Luxembourg SA; Banque
Internationale. Luxembourg;
Kredietbank Luxembourg;
Algemene Bank Nederland fri’;
Pierson. Heldring and Pierson:
Credit Suisse/Swiss Credit Bank;
Union Bank of SwiftertaDd:
Akroyd and Smithers; Bank
of Tokyo International; Bankers
Trust International; Chase Mai+
hattan; Citicorp International
Bank; Credit Commercial d®
France (Securities) London:
Daiwa Europe NV: DeUw
Securities (UK); EBC; First
Chicago; Goldman Sadis Inter-
national Corporation; Hambrtf
Bank: IBJ International; Kidder
Peabody International; MerriU
Lynch: Morgan Stanley lnte^ -
national: Nomura Internationa 1 :
Orion Royal Bank; Robert
Fleming and ■ ‘ Co.; Samoa 1
Montagu and Co.; Scandinavian
Bank; Societe Generate Straus 5
Turnbull : Sumitomo Financj
International; S. G. Warburg and
Co.; .Wood Gundy.
Closing prices on August 6
Financial Times Monday August 9 1982
Computes and Markets
WORLD STOCK MARKETS
NEW YORK
■mi
1 1
261b [ACF Industrial...! 28 u
1308 AMF... I 13 U
235* ARA 275*
25l* aSA ; 311-
11 tg AvxCarp 151*
251* Abbot Labs - ; 29
lfiig Acme ciovo ; lei#
12 ' Adobe Oil AOu 12ij
15J* Advanced Micro.i 23>*
3SJj Aetna Life ft Gu 34 1*
8i* Ahmaneon «h.f.i. bj*
25 ;A|r Prod A Che m 25 >g
8** Afczona 155*
24 .Albany Int.. 24
11 iAiberto-Culv. ; 1212
245* Albertson's.. > 335*
16 jAicanAlumlnium; 185*
17i* 'Aloo Standard.. I bu
21 [Alexander & A).. ; 21 12
17 7g Alagheny Ini 181*
291* 'Allied Carp 333*
245* 'Allied Store* 23?*
7ia lAllls-Cbalmeri, ... 7 it
058 Alpha Portd ' 141*
22 Alcoa.
3930 Amai. Sugar....—
leia !aribx
17S* ’Amdahl Corp
151* (Amerada Heu....:
95# I Am. Airlines. —J
55&a I Am. Brands
1812 Am Broadcast'll
251* |Am Dan '
24a® .Am. Cyanamld—
His Am. Elect. Pgwr. 1
56S« Am. Expraas I
31Tb Am. Gen. Insnce.1
9 Am. Hoist & DK...I
33s* Am. Home Prod-
25 |Am. Hosp. Suppyl
185g [Am. Medical Inti I
2i£ Am, Motors-
25i* 1 Am. Nat- Resces.]
435* [Am. Petfina I
5i> (Am. Quasar Pet..:
17i* [Am. Standard-,..'
261* Um. Stores
50 Am.Tel.&Tel !
23 it (Ameteklne
IB :Amfac j’
4fii* 1AMP
IB!* lAmstar 1
19 'Amstead inds
13i* Anchor Hockg....
367* |Anheusar-Bh_....i
12is Archer Daniels.,.
153* Armco
.Armstrong CK...
.AsameraOII
Asa/00
Ashland Oil
Asad. D. Good*,..
'Atlantic Rich
Auto-Data Prg...
Avco
: Avery hit)
BOS* 3BS*
30 1* 20&*
38S* ias B
271a 225*
29*8 IB
191* 118*
211* 1ST*
44U 361*
355* 261*
161* 131*
517* 37
385* 311*
205* 17
Bis 41*
231* 18
181* 157*
581* 45
197* | 145*
Avnet ■ 40
Avon Prod 90S*
Baker mtl 19
Balt Gas & El 25i*
Ban Cal 18
Bangor Punta ... Hi*
Bank America ... 17i*
.Bank, of N.Y. 3Bi*
Bankers Tst N.Y. 28s*
Barry Wright— 15i«
Bausch ft Lomb. 405*
Baxt Trav Lab.... 351*
Beatrice Foods... IBS*
Beker Inds 47*
Bell ft Howell ... 201*
Bell industries ... 15
Bondix 485*
Beneficial j 17 it
•Beth Steal !
■Big Thee Inds-... 1
(Black ft Decker.. |
1 Block HR
IB um BeO '
'Boeing
'Boise Cascade.... 1
;Borden
:Borg Warner
iBriggs Strain .....
Bristol-Myers.....
BP
'Brockway Glass.
'Brown Forman B
'Brawn Grp
.Brown ft Sharp—
.Browng Ferris....
Brunswick ..■
'Bueyrus-Eria...- .1 11
.Burlington Ind ...’ 17!*
Burlington Nrthh 351*
Bumdy 16i*
Burroughs. 30 1*
•CBS ‘ 365.
jCPC Inti i 301s
CSX 36J*
(Campbell Red L.J Its*
Campbell Soup-.: 337*
■Campbell Tagg 30
'Canal Randolph.’ 37 is
(Can. Pacific. 1 205*
[Carlisle Corp I 20Js
lOamatlon 1 32 •
(CarpTeoh 303*
(Carter Hawley.-.i 115*
Caterpillar 351*
(Calanese Corp... 42
I Cents! ; 281*
(Centex 19J*
Central ft 5w 14J*
IContral Soya. ; 95*
[Certain-teed 1 116,
(Cessna Aircraft.; 15
;Champ Home Bid 25*
Champ Int. I 121*
■Champ Sp Plug..[ 7t*
[Charter Co -j 8
Chase Man hatt’n 36 U
.ChemloalNY 28i*
Chesals Pond.—. 354*
Chicago Pneum- 121*
Chrysler 7
Chubb 311*
Cigna — 33J?
Cincinnati mu...., 1 20U
Citicorp. 231*
Cities Service-.. ( 37 1,
City Invest • 175*
dark Equipment 18 1*
Cleve Cliffs Iron. I 16T*
[Clorox • 134*
Cluettt Peaby ....; 15s*
Coca Cola. ; 35J,
Colgate Palm-...,' -167*
(Colling Alkman...; 13 U
Colt Inds i 207*
1982
High 1 Low 1
1982
High | LOW
81s I 37*
Aug. 1982 1
5 High , Low | stock
1982
High i Low
CANADA
B«* , 51*
230l*1561i
21 ' 147*
57 : 491*
811* I 525*
245* ( 197*
m« j 7 1*
121 * 10
195* | 14!*
697* i 874*
29 > 135*
581* 457*
59 SOI*
151* ' 121*
145* . 9T*
3H* : 167*
357* 1 295*
251* j 18
217* 154*
241* ; 197*
24 19
221* 164*
18U 121*
241* | 151*
261* ' 82
161* ! 71*
241* , 14
24 1 137*
151* , 12
(MOM 1 51*
iMstromsdla 22i»
■Milton Bradey ... 17
'Minnesota MM... 1 524*
Missouri Pae [ 53 b*
Mobil ! 19i*
Modern Marohgl 101*
Mohascc ,....i 105*
Monarch M/T-... 16 J r
iMonsanto.. ; 64.,
'Moore MgCmrk... 133,
(Morgan 'JPj, ....... 49«*
iMotorolo 63
[Munsingwear- 127*
Murphy <G0i. 1 135s
IMurhyOlf 16i*
Nabisco Brands..’ a3i*
'NalcoCham 10
Nat. Can. > 163*
[Nat. Detroit 1 1B7*
Nat. Disk Cham J 20
iNst. Gypsum 1 163*
'Nat. Med leaf Ent- 147*
|Nat Ssmicductr,. 16
Nat Service Ind.; 25
INat Standard. .J 7>z
iNat. Steel ; 14»*
•Notomas I 1ST*
'NCNB r 12
563,
284*
173*
«»*
43 h
141*
3BS*
501*
391*
3BSb
I « 5
401*
28
43*
634*
314*
24
781*
105*
251*
42 It
221 *
237*
281*
275,
331*
14
24'*
IBS*
30
[Enserch — — !
Esmark .1
Ethyl I
Evans Prod-
Ex CellO..... |
Exxon- I
IFMC- ;
'Fabergc..... ...... I
(Fed dors.... !
'Federal Co ...,
Federal-Mogul—.
Fed. Nat Mort....;
■Fed. Paper Brd...[
■Fed. Resources..,
Fed. Dep. Stores
Field crest Ml..... 1
Firestone— !
(1st Bank System
list Charter Fin..;
136* list Chicago- j
17 list City BankTax'
22U (1st Interstate
7 la 1st Mississippi..,
215s 1st Nat. Boston...'
2is list Penn..: (
25* iFisons- -.1
103* iFleetwood Ent...
135* iFlaxi-van !
285* Florida Pwr ft L..j
17is Ford Motor. j
2Qi* Foremost Mok— .
IQis Foster Wheeler...
13U Freeport MoM. ..
163* Fruehauf... ..;
83* GAF
201a GATX..._
28 GTE Corp. . —
131c 8
26lc 22
35lt 82 if jKa
3Bi* 23 :Ke
24S* 171* Kic
6Ss* 571* | Kir
595* [NCR 801*
241* New England El. 28i*
14>* NY Stato E ft G... 17«s
33 NY Times 36*2
273* iNewmont Mining 343*
12i* Nleg. Mohawk... 137*
265* NICORIne- 255*
41 Nlalsan (AC) A. ... 475*
153* NL Industries 155*
204* |nLT — .1 363*
40s* Norfolk Southern! 43 1*
201* Nth. Am. Coal ! 31
301* Nth. Am J Philips.) 35
231* Nthn. State Pwr- 1 271*
27* Northgate Exp. .; 3
39>, Northrop I 493*
225* N West Airlines... I 243*
174« N Wait Bancorp j 19 1*
384 Nwest Inds 38 >*
8 if Nwsstn Mutual ...I 85*
147* Nwest Steel W,... 153*
241* Norton j 24 U
16i» Norton Simon 20a*
171* Occidental Pet...! 171*
17 Ocean Drill Exp..< 171*
177* 1 Ogden 1 18i*
28 1* Ogllvy ftMrth 315*
117* 'Ohio Edison 13
16 Olln 16
15»* (Omark 146*
141* Oneok. 243*
187* Outboard Marine 223*
11 Overseas Ship.... 11'*
153* Owcns-Cornlng .. 167*
SH* Owens-Illinois.,. 213*
17i = PHH Group 197*
20 ', ,fpg inds ■ 32i*
121* jPabtt Brewing...- 17U
20i« Pac. Oa* 4 Elect,, 231*
227* iPao. Lighting ; 23 U
155* iPso. Lumber | 155,
Palm Beach 145*
Pan. Am. Air...... 3i*
Pan. Hand Pipe.. 235*
Parker Drilling ... 95*
Parker Hanfn IBi*
Peabody Inti...... 81*
Penn Central 225*
Penney (JG)_. 551*
Pennzolt 256*
People* Energy-1 8‘s
PepsiCo. 371*
Perkin Elmer I 177*
Petris Stores... ...I 215*
Petrolane.. .! 11 s *
Pflaor 1 53 t*
Phelps Dodge 1 19
'Phlla Elect 143*
|PhJlbro Bal'n lnc. : 24
iPhilipMorri* ' 461*
'Phillip* Pet ' 24s*
Iplllbury ; 391*
|Pioneer Corp 127*
Pltnay-Bowes 317*
'Plttston 1 123*
Planning Res'eh. 61*
'Pies* ay ....... . — ’ 88
28Sb
281*
3B1 2
265*
20
I 22H
; ms*
201*
401*
1 241*
491*
33*4
39J*
276s
17 J*
18i«
33t*
171s
281*
201*
171*
13
34S«
26
341,
165*
43
28
4n z
231*
34 J»
231*
191, ;
161*
41 !
29
GERMANY
1982 •
Aug. 6
Price
High | Low [
■ Dm
mm
arner-Lambt
m
NEW YORK
Indices
—DOW JONES
i
, 1982 J8lnoe Cmpilfn
! Aug. I Aug. 1 Aug. i
■ 6 1 5 ! .4 !
! 3 8 ' I “ j
30
i High j
Low i High | Low
High Low
AUSTRIA
Credit Aktlen (2/1/88)
HOLLAND
HONG KONG
23
: 151* (a MCA inti
. 17l 4
225*
■ 15i* lAbltibl -
.! 163*
8
5 jAgnlco Eagls....
.' 7.75
267*
1 205* Alcan Alumfn ...
.. 23 U
.! 241*
19
i 10 (Atbesto*....
11
237,
. 171* (Bk Montreal
., 18
271«
! 20 Bk Nova Scotia.
. 23m
4.50
1 2.15 (Baclo Resources
.' 2.65
203*
! 163 4 'Ball Canada . ...
.• 171*
19U
! 10U Bow Valley 137*
331,
! 21 BP Canada
.1 .23
24
14
6
. 3.30
121*
. 6 s * ,B.C. Forest-....
.’ 7>,
34
181* CIL Ino
.’ lBli
131*
S3, ICadillacPadrvlev
« 5U
111*
! 61* .Can Cement.....
8i*
341,
[ 185* (Can NW Energy.
«■ 24
531*
i 281* iCan Packer,
. 29
29
1 18 U CanTrusco
, 201*
28*4
1 161* Can imp Bank...
, 187*
40S*
| 25 Cdn Pacific.......
! 263*
18 U
! 13 Can. Pae. Enta...
146,
36 U
j 31 if Can Tire
. 36
22 1<
: 18i 2
541*
i 34 Comlnco
1 36*4
185*
1 135, Cons Batest A....
1 1454
81*
! 6 if Cont-Bk. Canada
1 53|
81*
( 3 Coseka Re*
1 3.40
91*
i 51, Costain
< 61*
S. 12
< 1.88 Daon Dovel
1.75
33
( 151* Denison Minas..
1 183,
177*
| fill Dome Mines....
71*
145*
, 4.70 Dome Patraleum
I 5.00
401*
27 'Dom Foundries.
' 271*
165,
i 13i, Dom Stores
131,
211*
1 ISi* Domtar
161*
72
: 33 Falcon Nickel—
41 H
231*
| 95* Genatar
93*
2.43
i 1.80 |Gt. West Ufa
1.80
17 5,
107, (Gulf Canada.
136a
5.87
1.80 'Gulf Stream Res
1.65
125,
7)* 'Hawk Sid. Can ..
91,
30»4
23 .Hollfnger Argus.
2312
241*
135* 'Hudson Bay Mng
1414
23
15 Hudson's Bey—.
17S*
101*
5 -Husky Oil
51*
44
42
251*
20 ;lmp OH A
251*
16*4
10 1 2
15
Bi« llndal.
11
254*
I6I2 .Mac Bloedel
181*
11 14
7 Marks ft Spencer
B
3.35
2.00 iMasaey Ferg
2.34
40
2212 .McIntyre Mines..
273*
281*
16 Mitel Corp.
2D3i
391*
35 Moore Corp
35
81*
& s 4 INat. Sea Prods A
7
221*
lls* |Noranda Mines...
141*
6014
41fi* iNthn. Telecom...
413*
171*
7 Oakwood Pet
111,
2.05
1.05 Paofflo Copper-.
1.10
75
52 Pan. Can. Pet—.
72lj
23
136* Patino.
173*
1518
14
15
8M Power Corp
84,
3.35
1.75 Quebec Strgn-...
2.80
91*
13
51* ’Ranger Oil
91* (Read StenhsA. ..
61*
11
401*
27i* ;RioAlgom
503*
261*
18i« Royal Bank.
207,
143*
11*4 'Royal Trusco A...
12 1 2
1ZJ,
4.75 Sceptre Rea.
7li
68
57i* Seagram
581*
19
157* .Shell Can Oil
177*
30:4
16 1* Steel of Can. A....,
173*
101,
4.70 Teek 8 !
7.00
34J 4
217* -Texaco Canada..,
291*
241*
17 *4 Thomson New* A
20
307*
22 Toronto Dom Bk.
253 4
25
164a Tran, Can Pipe. .
16
105,
57* ,1 runs Mntn. OIIA.
6I»
227*
141* Walken H< Res.. ..
JV»4
145*
11 5 » Weatcoast Trans
127J
371*
27 ,We»ton (Geo/...—.
29
DENMARK
Copenhagen SB 0/1/73) |.1iUS; I12J4! 112.B9, HUSK
128 JZ 2 IZS/ 2 )
108.0 ( 12/n
indust'l dlv. yield %
STANDARD AND POORS
; . July 3d 1 July 23
mamegj
S6.0'
S6.5 l
37.<
37J ;
111.8 H2/S1
35.6 (4/1)
18S.0
1093
110.6
111-0 1
124.8^2)81
87.7 (4/1*
1 1982 W nee Cmp/lfn
Aup. AU 0 . ; *y. , A UjB . : ■ Jjjr Ulw 1 H , a „ T ^T
anau.n.,1 m2 no*: in* '«*: »* ! V^‘
fOomp'.'toi 115.71 .«.» SU. ««•.
* 11 ' ' — Aug r4 r July 28 j July” 21 ■‘Year ago (approx
Indust'l dlv. yield X — 4.76
Indust’l P/E ratio
LoBff .Gov. Bond yield
GERMANY 1
FAZ Aktlen (ilrK/88)
222.73
1
223.76 226.47
226J4I
223.43 (3/4)
218.33 1 18/11
Oommerxbank(DecittJ)'
678.4 '
686.0’ 689.4
S8S.9 '
729.8 |3/«.i
678.4 i8;8i
HOLLAND
ANP-CBS General 1)970}
AN MBS induct (1878)
86.6 85.5 : 86.4 ' 86.5 j
SB, 5 68.2 : 68.7 - 66.6 ,
86.0 (10)6)
74.B i I0,6i
84.0 •S.'Ii
63.2 i4;l»
HONG KONG
Hang Seng Bank (11/7/14.1 IBS I.B2-1142JD2 1146.51 1147 J*
1445.22 (12.D
1129,83 (9/3)
ITALY
Banca Comm ItaLfISTS)
157.56; 1609. 189.97 179.85:
2 12.69 iia/S)
147.23 i!!;7i
JAPAN*-
Dow Average (16)0/49)
Tokyo Now SE (4/1/68/
1 1 :
7068^87092.67 7189^8 7215.41:
524.17[ 526.04 '630.04 | 552-56;
7928.35 (27/11
589.29 (27/li
0888.63 (17/5)
620.25 (1)7)
BELGIUM/LUXEMBOURG
19B2 Aug. 6
High Low .
,700 il.OlO | ARB ED
.100 3,900 IBank Int A Lux
.160 1,450 [Etekaert B
,845 '1,230 Ciment CBR
215 130 Cockerlll
,060 1,560, EBES
,740 3,240 Electrobel
,960 2,000 Fabriqua Nat ....
.720 2.180 :G.B. Inno
,720 1,200 GBL'Bruxi.
,960 1,490 Gevaert
,750 2,560 Hoboken
,570 1,298 Intercom
,130 4.000 Kredietbank.
,160 5.500 Pan Hldfl*..-
.020 4,290 Petroflna
,600 4,300 Royal* Beige ....
,600 1,650 Soc. Gen. Banq .
,575 .1,030 soc. Gan. Beige.
,950 5,100 Sonne.
,350 1,820 Solvay....'
,940 2,220 Traction Elect...
,460 '1.400 !UCB
,770 ‘1,316 lyieilla Mont
.! 1,074
i 4.100
, alias FRANCE
1982
High • Low
DENMARK
1982
High | low
- NEW YORK ACTIVE STOCKS
- • Change
Friday : . Stocks .Closing o n
ujd*d prise day. - ; •
Ad: wei*. : 1.485.400 3 3* - V Wirner Cnm. ..
Exxsa IJWS^OO 2W. «*<*»"
Manat 533,400 1* 4 [+ ^ ^ndy
Eli ' Lilly V -5MJOO 4«*> “3 Phter.
Coal ill: - • 572.000 IS** «-- 7 * Tranjwri. — -
Change
Stocks Cldfting on
traded price day
535,200 3ft —I 1 !
498.600 5ft r- H
489.300 25 — V
485,700 53 ? « H-, V
427.800 3ft i-' *«
5«ries Ban kCpn.til/UiSSlI 34U 243.9 244.6 | I4S.G j 295. 1 (11/1) =57.40 ( 7 tT,
-
WORLD 1 ' 1 -
Capital Inti. (171/78) J — I 122J 125.6 , 125.9 , 147.2 (4/1) 122.5 (8)71
( M ) Saturday July 31; Japan Dow 7,189.94. TSE 530.94.
f&M vsfua* of all Indies* are 100 except Australia All Ordinary and Metals —
600. NYSE All Com mo a — SO; Standard and Poors— IQ; and Toronto — 1.000; the
|**c named based on 1975. t Excluding bond*. 4 400 industrials. 5 40D
.industrials plus 40 Utiiitie*. 40 Financials and 20 Transports. c dosed
u Unavsilabel.
^4
High : Low
159.800 123,000'Anlcur Gen.. . ..
3B,SOO30 OOD Banca Com'le.. .
128,200
31.000
70
5,950
9.800
1,995
49
1,649 Centrale 2,220
4,750Credlto Vareslno; 5,4 10
1,479'Fiat., 1,524
3,400 2,091jlnve(t
42.000 21,600 Italeementl
2.180
25,800
94.00
3,040
3,405
1,580
840
2,0B8 Olivetti
2,050, Pirelli Co
1,149 Pirelli 8pa -
2^91
2.255
1^23
620
20,100
9,900 (Toro A sale.
10,770
6.3201 do. Prei
MiZ Group ....[
Ac row AueL- >
Ampol Pat.-.....-i
Assoc. Pulp Pap.(
Audimco
Aun. Cons. Ind.. 1
lAurt. Guarant.... 1
;Aust. Nat. Inda....:
lAust. Paper. ....
Bank NSW .'
■Blue Metal
Bond Hidgs
Bora!
iBl'vllle Copper...
BrsmblM Inda,...
'Bridge Oil-
| 6.50 BHP - 6.74
0.10 Brunswick Oil .... 0.16
1 3.40 CRA 3.15
2.43 jCSR - : 2.78
■ 1.70 'Carlton ft Utd ! 1.95
1 3^7 Icastlemalneiya- 3.64
1 0.33 iCIuff Oil (AustJ... 0^3
0.12 Do. OpU 0.12
I 1.18 jCockburn CemL 1.26
1.94 Coles (GJ.) 2.1B
I 1.45 ; Gomalco 1.90
, 1.30 Co stain : 1.40
I 0.88 'Dunlop : 1.02
, 2.48 Elder Smith GM. 2.75
, 0.14 Endeavour Res.. 0.16
1.46 |Gen Prop Trust.. 1.48
1.75 gHartogen Energy 1.80
0.88 Hooker — 0.88
1.46 llOl Auet.....— 1.60
1.03 'Jennings 1.18
0.10 jjImb'lanid&OcFPl 0.10
US pone* (D) 1.55
0.10 Lennard Oil- — - 0,16
8.41 MIM- 2.85
1.70 Meekatharra Me 2.00
0.13 Meridian OH 0.17
0.04 [Monarch Pet 0.07
1.25 jMyerEmp- 1.34
I 2.33 |Nat.Bank _| 2.48
| 1.65 'New* 2.05
1.15 (Nicholas Kiwi ....I 1.26
1.55 (North Bkn Hill 1 1.95
! 1.10 (Oakbrldge 1.45
| 0.28 Otter Expl ! 0.33
! 1.17 (Pancon 1.35
j 0.09 Pan Pacific ' 0.11
I 1J20 PfoneerConc.. U8
0.07 'aueen Marg’t G„ 0.08
' 1.60 ,RacklttftColn.... 1.90
3.83 jSantos . ... 4.95
■ 0.65 iSlelgh 0.95
, 0.22 :Southland Mln’g.. 0.26
S 0.12 'Spargo* Expl 0.17
1.55 :Tho* Natwlda..... 1.66
I 1^0 Tooth 2.88
I 1.35 .UMALCons 1.80
, 0.07 (Valiant Consdt... O.DB
0.55 iWaltonsBond.. .. 0.65
1 2.61 Western Mining. 3.05
| 0.64 Woodtlde Petrol. 0.70
1.32 ,Woolworth* 1.46
, 2.25 .Wormald Inti 2.48
1.32iAceaita ;
9.45. Ban co Brasil
3.1 iBeigo. Min (
2.35.Brahma PP
6.50iLogaa Amer I
BJJOiMannesmann OP!
6.3 iPetrobrasPP •
6.31;Souza Cruz
4.65 Unlp PE
7.6 Vale RIO Does....
TEL AVIV
SWITZERLAND
1982 ! Aug. 6
Prise
High j Low j
j Fra.
1,1501 815 'Brawn Boverl
1.345 I,165j0lba-Gelgy
1,050 1 910 do. (Part Certs)
3,310i l.BBO'Cradlt Suisse
S,375j a.WOlElektrowatt-
5201 595 Fleher (Geo/
63,600:63,750 HofMtochePtCti
6-3S5' 5^75'Hoff-ftoche 1/10
fi.900 6,250,1 nterfood
1,380 i,160|Jelmoll
l^sOo: 670iLandl* ft Gyr.
3^B5I 3,070Ne*tJe
1,4851 flSOIOer-Buehrle
2391 2 IOiPI rclli
4.460 3,850, Sandoz IBr)
649 497,8andoz<PtCtsi..
290 23flSchlndler iPtCtsi
750( 625’Swisaalr
325' 270'S wl 5* Bank -
6,600, S.SOOjSwIs* Reinsce— ..
1,080' 850 Swiss Volksbk....
3,310: 2,680 Union Bank.
2,425 2,010;Wintertnur
16,100. 13,200 Zurich Ins, . ..
Company
Banking, Insurance
and Finance
Bank Leumi la Israel.
IDS Bankholding
Bank Hapoalim Br
Union Bk of Israel Br.
United Mizrahi Bank
Hassnan Insurance Br.
Ganeral Mort. BBnfc Br.
'Telehot “ Isrl. Mt. Bk.
Dsnot S/Q
Land Development
Africa Israel Inv. I£10
Israel Land Devpt. Br.
Property and Building...
Public Utility
Super Sol “A"
Investment Companies
Bank Leumi Invest. ...
” Clal “ Israel Invest. .
Discount Invest
Commercial and
Industrial
Dead Sas Works ......
Polgat ■* B *'
Argamsn Textile Br. ...
"At* " Textile ■* C " ..
Amer. Israeli Ppr. Mills
Elbe ....
Teva Rag
Fuel and Oil
Delak
Source: Bank Leumi
Tel Aviv, t Bid.
Prices Change
Aup. 1 on the
1382 weak
1.117 + 19
1.147 + 13
83S + 15
10 5.750 -425
r. 2,130 —
.. 2.070 ft 80
- 1.470 —
- 900 f-* 10
. 1.146 KH 65
.. 1,615 t- 43
2.630 +150
1320 +150
1.000 ‘+270
381 + 19
1.755 -115
2,800 ’+ 29
2.W& +165
2.100 + 45
Is Israel BM.
NDTESs— Prices on this page are as
quoted ea the Individual axehangsa
md n* lest traded price*, f Dulbiga
suspended, xd Ex dividend, xc Ex acrlp
Issue, xr Ex rights, xa Ea ad.
20
Companies
and Markets
CURRENCIES: MONEY and GOLD
Financial Times Monday August 9 1982 j
cE
MONEY MARKETS
Putting off the inevitable
The scene was set last week
for a further cut in clearing
banks base rates. The Bank of
England continued to trim its
dealing rates and was more than
generous on one occasion in
meeting the market's daily
needs. Euro-dollar rates were
lower than the week before and
Building Societies chopped li
points off their mortgage rates.
But if the scene was set and the
audience was waiting in antici-
pation. the leading actor failed
to make a show and base rates
stayed where they were after the
previous week’s cut at 114 per
cent That which was likely last
week would appear this week to
be inevitable however and rates
should settle at 11 per cent.
The reluctance of the clearing
hanks to move from what has
been a very lucrative time is
understandable and their ability
to hold off until this week was
probably helped to some extent
later in the week when sterling
started to nose-dive. Interbank
rates on Friday showed a small
defensive mark up at die longer
end but still finished the week
i to 3 of a point easier.
Meanwhile the discount
houses continued to benefit, sell-
ing bills to the Baok at increas-
ingly attractive rates. By coinci-
dence or intention the authori-
ties' guiding hand in the market
proceeded through the week on
a stop go basis. On Monday band
1 rates fell by h* of a point and
band 2-4 by i while Tuesday's
intervention was made up
entirely of sale and repurchase
agreements. Market rates con-
tinued to case however and
Wednesday gave the Bank the
opportunity' to cut a further
of a point from band 1 and J
from bands 2 and 3. Thursday
saw no change in rales while
true to form Friday brought a \
of a point cut in band 4.
although this was more a bring-
ing into line move.
With Federal funds in the
U.S. finishing the week around
11 per cent compared with
nearer 12 per cent the week
WEEKLY CHANGE IN WORLD INTEREST RATES
LONDON
Base rates 11
7 day Interbank Uk-lZi,
3 mth Interbank ll-,'.-ll lA
Treasury BIIITender >11.7246
Band 1 Bills 11':
Band 2 Bills 111*
Band 3 Bills ill's
3 Mth. Treasury Bills :lO^-10^
1 Mth. Bank Bills 11.'.
3 Mth. Bank Bills '10-„-10;;
TOKYO
One month Bills 7.34373
Three month Bills 7.28123
BRUSSELS
One month :14-»«
Three month 14 t>
AMSTERDAM
One month 8;i
Three month 9
BANK OF ENGLAND TREASURY BILL TENDER
I Aug. 6 , July 30 : . Aug. 6 July 30
Bills onoffar ' £100m ; £lOOm Top accepted
Total of l ! rate of discount 10 .7494% ■ 11.0904%
applications SA5L.B6mJSSi5.42m '.Average 1
Total allocated.... £100m j £100m 1 rate Of discount. 10.7246%, 11.0802%
Minimum 'Average yield. . . 11.02% 11.39%
accepted bid-...' £97.32 £97.231; Amount on offer
Allotment at 1 at next tender. , £100m £lQ0m
minimum level...- 93% ; 69% '
7.34373
7.28125
.change,
-- —'NEW YORK
Unch'di Prime rates
— '4 ' Federal funds
—5b '3 mth Treasury Bills
O.S6SS 6 Mth. Treasury Bills
'5 Mth. CD
‘FRANKFURT
.. Lombard
.One Mth. Interbank
_*• Three month
'* ■ PARIS
' Intervention Rato
,Unch d 1 Mth . interbank
Unch d Three month
.MILAN
—if One month
— U Three month
DUBLIN
— r’.r One month
— «a Three month
13
11-11U
9.98
; 11.93
11.80
Unch'd
—0.076
-0.075
:Unch’d
-'1
London— band 1 _ 6ilts "mature in up to 14 days, - band 2 bills "15 to 33 days, and
band 3 bills 34 to 61 days. Rates quoted represent Bank of England buying or
selling rates with the money market. In other centres rates are generally deposit
rates in the domestic money market and their respective changes during the
weak. • Band 4 11.
FT LONDON
INTERBANK FIXING
3 months U.S. dollars
LONDON MONEY RATES
: Sterling - Local Local Auth-, Finance 1 Discount ' Eligible
Aug. 6 Certificate Interbank Authority negotiable House Company Market Treasury Bank
1982 of deposit | deposits bonds Deposits 'Deposits Deposits Bills ♦ 1 Bills -p
bid 12 SiB
offer 12 S/4
6 months U.8- dollars
bid 13 &;a
of far 135/4
Overnight.
2 days notice...
7 days or_. . ..
7 days notice...
One month... .
llta-12
lli;-ni B
lHr-I2U
IH4 11:*
Two month's! ... Ills Uj; I ll-:,-ll]c
Three months. 1 1 '*-1 1 ...
Six months - iHs-11
Nine months... 11 'a 11
One year Ill* 11
Two years -
• 11... 11 r<
: ll.;-ll,:-
r 11 A 11.4
f llM-Urt
. 12 -llia •
i 111,-11* -
llis-ll<s :
10'2-lOla
111 ; Ilia 1
. 11*11 I
UU-12ij 911 >2 —
111,-1214 11 'e
in, 11 uu
-ll:«.ll!i 10ij 11 in
11^-llii lOir-lOSs lO^lO"
Tha fixing rates (Aug 8)' ore the arith-
metic means rounded to the nearest
one-sixteenth -of the bid and offered
roles for $10m quoted by the market to
five reference banks at 11 am each
working day. The banks am National
Westminster Bank. Bank of Tokyo.
Deutsche Bank. Banqua National da
Paris and Morgan Guaranty Trust.
ECGO Fixed Rate Sterling Export Finance. Schema IV. Averaged Reference Rate lor interest period 19 July to 3
August 1982 (inclusive): 12.143 per cent.
Local authorities and finance houses seven days' notice, others seven days fixed. Long-term local authority mortgage
rates, nominally thre years 11*« per cent; four years 12 1 , per cent: five years 12 1 , per cent. oBnk bill rates in table are
buying rates lor prime paper. Buying rates for four-month bank bills 10*4 per cent; four months trade bills IT 1 , per cent.
Approximate soiling rate for one month Treasury hills 11 -ll 1 * per cent: two months lOVIO^u per cent and three
months lOV-IO^n per cent. Approximate selling rats for one month banks bills llht-ll 1 * per cent; iv>o months IO^u-IO 7 ,
per cent end three months pet cent: one month bills tl’u per cent; two months 11*i» per cent; three months
11*w per cent.
Finance Houses Base Rates (published by the Finance Houses Association) 13 per cent from August 1. 1982.
London and Scottish Clearing Bank Base Rates for lending li 1 : per cent. London Claaring Bank Deposit Rates (or sums
at seven days notice 8*1 per cent. Treasury Bills: Average tender rates ol discount 10.7246 per cant. Certificates of Tax
Deposit (Series 5) II 1 : per cent from August 5 (plus an interest rate supplement of >4 per cent for the first month).
Deposits withdrawn for cash 9^ per cent.
EURO-CURRENCY INTEREST RATES (Market closing Rates)
Canadian
Dollar
Belgian Franc
Conv. Fin.
Short term
lltj-lli.
101,-11
1713-181-
7 day's notice....
Hi; Hi,
1M1U-
161,-171-
Month
*1.',: 11^«
lU;ll>i
is:-..* 16.;.
Three months
111,-115,
12 r *-I2iJ ,
15re lSr.1
Six months
11.';- lire
12,- 12 H
15:. -184
One Year
llHll'2
- 13ii.l4.i .
1514-164
14SB-143J
14 ia.145*
141- -14/8
16-1658
17 la-17 1- .
1778.181, I
171*181;
20i6-235fi
205,-2 1 's
2053-2118
211- 22
21-215,
131,-141;
131J-I6
15*«-14
14 *4-14 i-
131-1412 ,14’. e -14Ja
131|»145« 1418.145,
14-15 14ij 145,
14-15 14i t 149a
75,-87,
HMUc
llSi-1314
13V15U
155,-187,
16Sb-181,
SDR linked deposits: one month 10 , i,>1Q u i» pot cent: three months 1 n i» per cent: six months 11V12 1 * per cent: one year per cent.
ECU linked deposits; one momh 11 : i*-11 u n per cent; three months 11“i*-12 s i* per cent; six months 12 *i»-12 i: i» per cent: one year 12*c-J 2\ per cent.
Asian S (dOBing rates in Singapore): one month 11* a -ll ll i* per cent: three months 12 , u-12 a u per cent; si/ months 13*,-13^ per cent: one year 13 a »-13 u u
per cent. Long-term Eurodollar: two years 14*1-15 par cant: three years 74 7 ,-15 l , per cent: four years 15- IS 1 , per cent; five years 15VI5 3 , par cent; nominal
closing rates. Short-term rates are call for U.S. dollars. Canadian dollars and Japanese yen; others two days* notice.
The following rates were quoted for London dollar rertiheates ol deposit; one month 11.35-11.45 per cent; three months 11.90-12.00 per cant six months
12-70-12.80 per cent; one year 13.10-13.30.
CURRENCIES AND GOLD
Dollar strong
THE DOLLAR SPOT AND FORWARD
% Three %
p-a. months p.a.
-0.49 0.58-0.68dis -1.47
6.12 1.65-1.50 pm 4.59
-4.56 0 95-0 99dis -3.10
2- S3 2.50-2-40 pm 3.55
-2.26 17-20 dis -1.55
-0.17 I 1 — 2 dls -0.80
2.76 2-39-2.34 pm 3.78
-15.37 120-AIOdis -12-34
—5-82 165-185 dia -8.18
-9.03 28-30 dis -BJ1
Tbe dollar executed a sharp
turnaround last week. Having
started off on a weaker note as
Euro-dollars rales followed the
downward shift in the U.S. dis-
count rate, attitudes seemed to
waver mid-week and by Friday
the dollar was surging ahead,
appearing to some to defy logic.
As the dollar lost ground to
start with, there was a marked
reluctance to go short on the
currency since previous sharp
falls in the value of the dollar
have tended to be followed by
a sizeable upward correction.
Last week was no exception and
factors dismissed or ignored
earlier in the week were
pushed to tiie forefront in an
effort to justify the dollar's
performance. These included
fears of higher rates in the
U.S. as the administration
pumps more and more paper
into the system to meet its
funding programme and uncer-
tainty over the short terra as
to the direction of U.S. money
supply.
line enough if this started to
sail a little too close to upper
projections, the authorities may
wish to put on the brakes for
a while. The other side of the
coin accounting for interest
rate differentials ie, key rates
in Europe also gave some rise
for concern. The fall in U.S.
GOLD MARKETS
rates was the ideal incentive to
help European rates ease but a
widening of differentials now
could Lead to further upward
pressure on the dollar. Already
last week the dollar touched
levels not seen since July's
peaks which themselves repre-
sented 11-month highs against
the Swiss franc and D-mark and
record levels against the French
franc and Italian lira as well as
some Scandinavian currencies.
This Thursday sees a meet-
ing of tbe Bundesbank central
council where up until recently
half a point was expected to
vanish off the Lombard rate.
Developments over the last few
days have brought this assump-
tion into question and the
dollar's performance over the
early part of this week will be
crucial.
Sterling started to look a
little shaky towards the end of
the week but managed to
recover its balance against Con-
tinental currencies while con-
tinuing to suffer along with all
other currencies against the
dollar.
Gold spent a rather uninterest-
ing week, bobbing back and
forwards mainly to the tune of
the dollar and Euro-dollar rates.
After closing at S3426 last week,
this week it finished at $346-347.
UKt 1.7040-1.7140 1.7120-1.7130 □. 02 -0.1 2c dis
Ireland) 1.3715-1.3785 1J765-1.37SS 0.75-0.65c pm
Canada 1.2488-1 -2620 1.2495-12505 n 44-0 .49c dis
Nethlnd. 2.7620-2.7610 2.7570-2.7580 0.70-0. 00c pm
Belgium 47.65-47.92 47.76-47.78 8-10c dis
Denmark 8.6950-8.7160 8.6950-8.7050 par- Lore dis
W. Ger. 2.4925-2.5100 2.439E-2.S005 0 60-0 55pf pm
Portugal S5.S0-8S.00 85.75-88.00 60 -160c dis
Spain 113.00-113.45 113.00-113.10 50-B0c dis
Italy 1 ,395-1.401 V 1.396-1,397 10-11 lira dia
Spain
Italy
Norway
France
Sweden
Japan
Austria
Switz.
6.7190-6.7410 6.7300-6.7400 1.60-2.00ore dis -3.20 J.llW.EOdis -2.55
6.9400-6.9750 6.9475-6.952S 1.BS-2.10c die -3.41 G-20-6.70di* -3.71
8.1750-6.1920 6.1750-6.1850 1.25-1.45ore dis -2.62 2.10-3.30dla -1.42
250.85-261 .85 260-35-260.45 1.10-1.02y pm
17-51-17.62 17.55-17.56 5.60-4 AOgro pm
2.1230-3.1420 2.1235-2. 1305 1.49-1. 41c pm
4.88 3.60-3.50 pro 6.45
3.41 18.50-15-50pm 3.87
8.17 4-28-4.20 pro 7.96
tz. 2.1230-2-1420 2.1295-2. 1305 1.49-1. 41c pm 8.17 4-28-4.20 pm
1 UK and Ireland are quoted in U.S. currency. Forward premiums and
discount, apply to the U.S. dollar and not to the individual currency.
THE POUND SPOT AND FORWARD
U.S. 1.7040-1.7140 1.7120-1.7130
Canada 2.1310-2.1440 2.1365-2.1375
Nethlnd. 4.69-4.73 4.71 '*-4724
Belgium 81.30-82.00 31.75-81.85
Denmark 14.81-14.90 14.85-14.86
Ireland 1-2385-1 .2465 1.2435-1-2445
W. Ger. 4.25 x j-4-29 4 274 44S : j
Portugal 145.25-147.50 146.75-147 JJS
Spain 193.25-184.25 193 75-194.00
Italy 2.382-2.395 2.389-2.391
Norway 11.46-11.54 11.52-11.53
France 11.85-11.93 11.89-11.90
193-25-194.25 19375-194.00
2.382-2.395 Z389-Z391
11.46-11.54 11.52-11.53
11.85-11.93 11.89-11.90
Sweden 10.54-10.59 10.57-10.58
Japan 443-449 4454-4464
Austria 29.30-30.15 30.05-30.10
Switz. 3.63-3.66 3.64»-3.654
0.02 -0.12c dis
0.83-0. 93c die
1’r’ri Pm
22-32c dis
Wjora dis
0 £2-0. 75p dis
1L-VP> pm
100 -285c dis
90-llSc dis
% Three
p.a. months
-0.49 O.Sfl -0.68 dis
—4.94 Z40-2.50dls
2.22 2V24 pm
—3.96 68-78 dis
-0.78 84-94 dia
-6.61 1.83-i01dis
2.46 24-Z4 pm
—15.71 320-7B5dis -
-6.34 355-380 dis
171-20=} lire dis -9.54 55-58 dis
3 : i-4 =< ora dis
?4-44c dis
2V3>.o re dis
1 80-1 .60y pro
8*2-5*19*0 pm
2V24« pm
-4.03 11V12* dis ■
-3.78 15-18 die
-3.62 8’r-94dis -
4.57 4.60-4.40 pm
2.79 20V 17 pro
7J1 6V5*! pm
Belgian rate is lor convertible
Sw-month forward dollar 1.92-
fnmes Financial Irene 86.60-86.70.
! 02c dis. 12-month 3. 90-4. CKc dis.
FORWARD RATES AGAINST STERLING
Spot 1 month 3 month 6 month 12 month
Dollar 1.7125 1.7132 1.7188 1.7322 1.7523
D-Mark 4.28 4.2713 4.ZS50 4.2234 4.1885
French Franc 11.8950 11.9325 12.0500 12.2582 12.6578
Swiss Franc 3.65 3.6263 3.5913 3.5449 3.4548
Japanese Yen 446.0 444-3 441.5 437.7 429.6
EMS EUROPEAN CURRENCY UNIT RATES
Gold Bullion (fine ounce*
Close IS346-347 (£202.2oa*;l |S345-346
Opening - S54S-546
Morning fixing. ...,3346.125
Afternoon flxing.:5344.75
(£302-202 >rl '8345-546 (£3011, 2013,1
(£202-202 1st .8351 4 3521; .£202 tj 203/
(£302.6261 ' ] 154028 i£201.066i
i£20 1.490 j S346.50 (£201.629)
Kn/gmd S3 5 5 1,-3 56*3
la Krug S183t«-184ie
t* Krug 893ia 94 tj
1(18 Krjxg S38-39
Maplelea, 859524-36634
NeW Sov 582*2-83
Gold Coins Aug. 6
(£2071,-208 U) 'KingSov
(£107 ta-107 s,) {Victoria Sov
(£5413-551,) French 20s
(£22 it -22St' 50 0308 Max.
(£207^1-2081,) )100 Cor. Aust
i£48t,-4Btii 320 Eagles
S87-89 r£50ia&l<s)
sen -39 (£5012-8 Hal
5751,-77 la (£44-45 U i
5«tH2-42«l5 (£S4S1 b-!47J,1
58354581; (£195 la -187^,1
6390-398 i£ 2274 4 .252 l 2 1
Belgian Franc ...
Danish Krone ...
German D-Mark
French Franc
Dutch Guilder ...
Irish Punt
Italian Lira
ECU
central
rates Augu« 6 rata divergence limit %
nc ... 44-9704 45.1143 +032 +0.13 ±13940
ne ... 8.23400 831139 -0.27 -0.46 ±1.5004
Merit 233379 2.36228 +1.22 +1.03 ±1.6691
ic ... 6. 6138 7 637524 -033 -0.77 ±4-1389
ler ... 237971 2.60180 +036 +0.67 ±1.0888
0391011 0.686835 -0.60 -0.7S ±13601
1350.27 1320.00 ’ -2-24 -234 ±1.6430
Changes are for ECU. therefore positive change denotes a
weak currency. Adjustment calculated by Financial Times.
Currency
amounts
against ECU
August 6
45.1143
831139
2.36228
637524
2.60180
0.68 6835
1320.00
V. change
from
central
rats
7. change
adjusted for Divergence
rTN j
v*1s4'.Ja
before and Euro-doJlars weaker,
there may be more room for
manoeuvre ooec the dollar
retreats from level held at the
moment However if UK base
rates are destined to fall some-
time later this year it may well
be that tbe authorities will have
to put- more muscle into their
nudges to overcome the reluct
ance of the clearing banks.
OTHER CURRENCIES
CURRENCY MOVEMENTS CURRENCY RATES
Argentina Peso... 38,166: 22,300t Austria 30.15-30.45
AustraliaDollar.. 1.7350 1.7370 1.0150 1.0155 Belgium . 86'i87'i
Brazil Cruzeiro ..317.48-310.48 1S533-1B6.26 Denmark 14.B2-14.9fi
Finland Markka.. 8.1650-8.1780 4.7B40-4.7660 France 11.85-11.95
Greek Drachma. 1I8.S22-I2I.S44 69.75-70.25 Germany 4.26-4.30
Horlfl Kong Dollar 1035-10.371, 6.064-6.074 Italy 2360-2400
IranRIal. . . 146.50* *84.50 Japan 445-450
KuvraitD inari KD) 0.493-0.494 ; 0.2887-0.3888 ] Netherlands 4.6fit=-4.74lz
Luxembourg Fr„ 81.75-81.85 , 47.76-47.78 Norway 11.45-11.55
Malaysia Dollar... 43300-43450 - 2.3590-2.3640 -Portugal . 143-159
Now Zealand Dir. 2. 3375-2.3425 1.3670-1.3690 l Spain. 187 1,-1961,
Saudi Arab. Rival 6.8820-53875 3.4390-3.4400 , Sweden 10.61- 10.61
Singapore Dollar3.6925-3.7075 2.1615-2.1685 i Switzerland . .. 13.65 1, -3.67 1,
Sth .African Rand. 13815-1.9840 1.157a 1.1585 [United States .. 1.70-1.72
UJLE. Dirham....! 6.2800-6.2850 ,3.6715-3.6725 I Yugoslavia- ! 89-99
t Rate shown lor Argentine is commercial. Financial rale: 66.635-56,725 against
sterling 38.S5a39.000 against dollar. * Selling rata.
EXCHANGE CROSS RATES
1 Bank or Morgan
Aug. 6 England Guaranty
Index Changes-;
Sterling 91.1 -52.2
U.S. dollar. 121.8 -12.5
Canadian dollar . .. 88.6 --1S.8
Austrian schilling- 117.1 -26.4
Belgian franc 94.7 —2.0
Danish kroner... - 81.7 —14.0
Deutscha mark....' 124.6 -49.5
Swim franc 144.5 - 95.5
Guilder 116.0 -23.7
French franc 73.7 - 20.E
Lira. 53.7 -58.4
Yen 130.7 : -24 .6-
Based on trade weighted changes hem
Washington agreement December 1971.
Bank of England index (base average)
Bank, Special ; European
August 6 rate Drawing i Currency
a s ' Rights : Units
L ' ; *j— i
■mirr
: ^ pen
n
=a
82.9
PJ
iLaB- i 1 1
1 ^
El!
Sterling
UJ5. -
Canadian S„
Austria Sch.
Belgian F ....
Danish Kr. .
D mark
Guilder..
French F.. .
Lira
Yen-
Norwgn. Kr.
Spanish Pts.
Swedish Kr_
Swiss Fr
Greek Dr*ch
0.632941
. 1.08157
m
19.0594
51.7639,
9.415C7
2.70858
2.90730
7.54395
1514.47
280.255
7.27464 1
122.544'
6.68843-
2.3l077i
76.5752 1
0.551799
0.943024
1.18170
16.6019
45.1 143
8.21139
2.36228
2.60180
6.57524
1220.00
246.035
6.35410
106.864
5.82648
2.01289
66JJ039
■eekDrich 20 1; 76.5752 65^039
* CS/SDR rate lor August 5: 1.35725.
Pound Stirling^ US. Dollar ■ Deutachem'k: JapaneseYon FrenchFrane Swiss Franc -Dutch Guild' Italian Lira Canada Dollar Belgian Franc
Pound Sterling
U.S. Dollar
□eutsehemark
Japanese Yen 1.000
French Franc 10
Swiss Franc
Dutch Guilder
Italian Lira 1,000
Canadian Dollar
Belgian Franc 100
11.B95 j
| 3.6BO
4.720
2390.
2.137
81.80
6JK6
I 9.131
2.7S6
1396. i
1.248 ;
47.77
2.779 |
0.853
1.105
S58.4
0.499
19.11
25.87
S.1B4
10.58
5339. ,
4.79 1 ;
183.4
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22
INFORMATION SERVICE
financial Times Monday August 9 1532
FOOD, GROCERIES— Cont.
m
Start.
Pita
LOANS — Continued
letarest
Ok
Start
Pitta
£
last
d
Ykff
U. | Bad.
Financial
BRITISH FUNDS
Mmt
ta
Pita
£
m
rut
ht | tad.
Shorts” (Lives up to Five Years)
2ZM*r ZZSIEadi 9%pc 1982.
Slid 5Ja)Exch. 6%pc 1983.
Exch- 3pc 1983—
2LAug ZIP
17S 17Mar|
lBJa IBJuV
2ZMey 2ZN
12Jun IZOj
15JiH 15Ja)
20Ang 20R
22N 22Mayj
19D 19Jon|
ZbMar 26S _ .
2ZAog ZZFTTressury
22S 22 War! E
21 N 21 Mm
15Jan lSJtqTi
22May 221?
25 Am 25 Fl
Treasury 9%pc "83-
Exeh.l3%pc"83._
ExctL Idee 1963
Funding S 1 ** "82-84
Each, ll%pc 1984.
Etdieomr 14pc 198
Ext±. 3pc 1984
12pc 1984
15pel985
ucCnv. "85
Exeh.lZpc
Eari. ll^pc"86
lftla lOJri Treasury
14Ja 14Jn Trrm. 12‘xPC '86 Cm
29 Apr 29Qct Exch. 14pc 1986...
22Jul 22Jar Exch. 13%pc 1987.
IN 1 May FondhtgWjpc "85^7;
14Ja. 14Jul)Tn>asury Sc 1987.
Rve to
3 May 3NITrea5. 12pc 1987
3 M» Treas 12pc 1987 "A" .
ZbJri abJaJrwnVtK’BMStt.
Ua Uuf Transport 3pc 78-88
22Aug 22F Treasury ll%pc 1989-
15Ap 150a Treasury 5pc »89.
15Jul. lSJa. Treasury Upc 1990#J
22Seja 23b. Exch. 12^ 1990-.
150 15Jun Treasury Si** TC-tttt . ,
lOJ* 30Ja Treasury lUipc 1991_J
50a. 5Ap. Funding 5Vpe "87-91*?
25Ap.250tt Eads, llpc 1991
22Jid. 22ii Treasury 17>4pc 1 92tt„
ZLAog 23Fb Treasury lOpc 1992_
25Fh. 25Auq Exch. lZWc "92
22Mar. 22S Exchrguer 13ijc *92—
141a. 14JoL
15 Mar. 15S Funding 60c 1'.
23 May 23N Treasury 13%»e V
IS 1 Mar Treasury - • “
Z70 27 Ap ExTOequer lS^pc 1
22F 22Ad^ Ext*. 12ljpc 1994-.
fcf
968
861
96%*
plTI
3.10
100%
■Tj.
1293
939
102%
15'
1339
99
45
1030
96%
89
w
Ml
151
ITT
nr
92
0!
IE
101%
V!
107*
141
101%
15 ‘
87
14 5
99%
8(
101
15 1
vrr
l«i
10ft
134
65
9V 4
33
a.97
101%
—
1210
106%
13.16
104%
■ Lf'
12 71
88%
734
81
278
1129
1817
934
10 81
10.94
1135
10.75
7 91
10.77
11.40
7.49
1133
1172
1144
832
1169
1183
13 65
7.81
1185
10.14
1184
32.00
1195
9.57
7.70
Fifteen Years
17Uay
ZlAug
Treasury*
25Jri 25Ja Treasury 12nc "95.
IN lMayGas3pc'W95
2Ua 2Uni Exch. If
15 May 15N Ti
22Jul. 22Ja_ Ti
15S 15Mv Treasury 9pc"92/96tt
3M 3 May Treasury 15%pe •%#_
15N 15May Exchequer 13 %jc’%J£.
lAp lta Redemption 3pc 1986-96
Z2M 22Ja Treaswy 13%pc "97^.
301? a
99i 3
84
94%
71%
92%
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Feb. QaJ
Jaiu
JUyjBuddry’s Brea. -
BuhnerfH.P.)—
Burtonwood
Clark (Matthew).
May
Ocl
Feb
Jaa
Jaa
Dec.
July
Jut
Sept.
June
Jul
Dec
BellBven Brewery
4.6)
Brown (Matthew]) 186
Distillery
Gordon (!_)
Greenali Whitley
Greene King
Gulms
. Hiriv'd DrSL 2Qp.
Auajlnvergordon
Irish Distillers ..
Macallan, Glen.
Marsttn Thunmao-
Morland —
J+Ruddie (G J lOp
Augiscon & New 20p
Apr.iToiTTaun I
Vxux.
Whitbread "A'_
"Wol* Dudley--
YougBrtw'A'Sfti.
Do.NuaV.5ft)!
7ff 55
293 f275
j Ht 79.46
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19.4 K72
73 Q91,%19.9
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7i 635
76 235
19.7 126
19.7 5.75
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481 4—
76 T3.44
19.7 71
216 4.9
19.4 25
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7.6 45
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65 7.0
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3313.7
251
3i
BUILDING INDUSTRY,
TIMBER AND ROADS
June
Jan.
Jaa
May'
Feb.
Feb.
Jaa
May
Feb.
Jaa.
May
Mar.
£?"
OB.
Ocl
May
May
Jan.
Dec
Aug.
Jaa
Jan.
Apr.
May
&
Ocl
May
Up to 40 pages : £1550 + VAT
61 — 80 pages : £27.50 + VAT
41-60 pages : £2250 + VAT
over 80 pages : 2s quoted.
N3 Form lOK's and Annual Reports are despatched by return, other
SEC documenta can be provided on request, subject to avaOabilitv.
FOR FURTHER DETAILS ABOUT THE INFORMATION CONTAINED
ON THE VARIOUS SEC DOCUMENTS. CALL KATE DAVIDSON ON
THE ABOVE NUMBER.
A
V
FiNANCIALTIMES
BUSMSSM=aWAHOHSSWJCE
The Financial Tunei Busiuns luforcutna Limited. Reentered is Engiiad Na 202281
RegMrmJ Office: Bracken House. M Canaan Street. London EC4P 4BY.
Nov. Aberdeen Const
July Abenhaw Cem
Jua Allied Plant lOp
Allied HeslOp
Nov. Arndlffe 10p— .
Aug. BPB IndsTBcfe-
Aog Saggeridge Brit. J
Jttfy Bailey B«n Up
Dec. Barrett Dev. lOp
Aug Beechwood Ujp
July Bellway
Oct Bedford M.lOp
Aug Bett Bros.20p
OcL Btoddeysr*. .
May Blue Clide Of
M-r Breedon Lime
Dec. BriL Dredging
Nov. Brawn Jksa 2
Jirfy Brownlee — .
May Bryant Hidgs. _
Jan. Burnett AHaHan
July C. Robey "A" UP
July Carr (John)
Det Carren
OcL Cement Rnadsttne
Ocl Comben Ga 10p
Ox Cwrder InL
Oct Cos tarn Group-
Ocl DaDefd.
Apr. Ccuitryslde
teril Crouch (D.) 20?
Oct Crouch Gran
Qe* (George) i
Apr. Oct iknj^as Rota
rDurton Grp. 5p
Nw. May EriSi — .
Ja. 0. July Fairdaugh Cora.
May. Dec. Feb. Ind. Up —
May Dec Da "A" lOp—
Jaa May Flrian (Jota) lftij
Mar. SepL Francis Pkr. lOp
Jaa JuV French IGer —
Apr. OcL Gal liford Sp-
May GfcbsD"dyAlDp
Jriy F-b.G>«ii(KJJ12p
July Oct Gtossop
Uar. SepL HJLT. Grp- 10p
Jaa Sep- Helical Bar
Dec. July Headman (P.C.)
Jaa Jo* Hewdeti Sl lGp
Jaa Aug. Heywcod Wms.
Dec. June Higgs rt Htfl
Mar. Sept Howard Shut 10p
Ajnl Ocl I.D.C.2CP-
Hvt MayilbaodcJchnsen
April SepL Jarvis (J.)
•rJayplant
Apr. SepL JetnaigsSA050
— ?lctsKnaFs.Ii4
July Jew Edwd. Up
July ULugeCoa FIDO
June Oct Lair^ (John)
Jaa Aug Lathara (J.) a
Jar. July Lawrence (W.)
Fea Dec. Leech (Wo.) fflp
Jure Dec. Leyland Paint-
Hot. Jure Liller F J.C
Jaa. July London Bride—
Apr. Ncv. Lovell (Y.J.)_
fVcLaspiQn&H
Mv. Sep. Magnet &5thrts.
Nev. Jua Maiden (Hldg)
OcL Marchuriel
Mar. Ocl Marshall* (HU)
Feb. Acg. May & Hassell..
Meyer InL
Apr. Nor. Miller (Stan) Up
Ocl Apr. MlxanKrete —
Nov. May Mod. Engln
July Sep. Mcnk(A)-
Jaa July Mowietn (J) —
June NewarthIU Cl_
Aug Feb. NolLBridcSOp
Feb. OeLlFhoerux Timber
Jaa DecJPcchins—
Jure Dec. RMC
May MM ay Paine bids. 20p
^Ransts
J*v OaJRedlantf
jDo. (New GrdJ.
lR?C’a.'C{L Wrote.)
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Rslun Grp. lOp -j
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MayjRuberoht
Juh SwtyP. CerrereJ
OctJSSB Group T 1
MaytSi»pe & Fifter.
Ocl Sheffield Brick.
Jure Smart CJJ lCp .
DecJSIreeten lCp_.
NoiJTnnac 50p— .
GoJTayfcr Woodrow
GcLjTiLbury Grp
OcLlTrava & Arnold
Jol)Trm*taien5i31b-
June (TurTiff. -
Jan. JnlylUBM Group
Ncvpie Cwr^ Ski 25-1
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Watts Blake
Wertern Bros ...
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Jutj KVi Kon( ConwITy)
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Jriy
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May
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Jon.
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Jriy
May
May
Ja.
Kay
Aug.
Mar.
Apr-
Dec.'
May
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Mar.
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tun.
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29J 266
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173 7.0
19.1 303
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Jaa June Aquasajtum 5p.
Jaa 6me Do. "A" Sp
Aug. Feb. BaterisSbv lOp
Jaa Jriy Bataen Stores lDp.
Jure Beattie (J1 ''
Jua Nov. Berta! is li
Reb. SepL Boaidman I .
Jaracry Bc+ton Text 5p
Jan. Jriy
Jaa Jriy BriL Hone Sirs...
Feb. Aog Brown (N)20p.
Mar. Aixl Breton Gip. 5ft) -
Jane Caird(A3_
May Not. Carton 'A' 2Dp
Jeoe Dec. Casket (2) 10p
Ocl Apr. Church-
Nov. July Comb. Eng 12%j»)
Aug Feh Gootet Grom 5e_l
March Corned Dres 5pJ
April Oct Courts ‘A*.
Dec. Cures—
Keftm(to*e)Hp
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July Not Dew hirst lOp—
Mar. GcL Dixons Photo lDp
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Nov. Jure Empire Stores..
April Oa. Executes! 20p...
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May Ocl Ford(M"tia)lQp.
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Jaa Jene Hepeorth(jjl£p
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Nov. J« House riLerose-
Apr. Aug J*e (Ereea) V^\
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b. Oct Polly Peck 5p.
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tr. Dec. Pritaaa R.&25pl
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Mn. Oct RaybeckUp—
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Jriy Deu. Reed Ausdn‘A r
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Mareh SepL Do. 2S9GP(. 12%p_.
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Dec. Jriy SeJlnoourt
Feb. Jriy SrtbW.
May Nov. Stanley AG.5e
Feb. Ang Stead. & Sim "tf
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Jriy Sunrie20p — [
I Jan Jriy Tern-Consulate. )
Jriy Time Prods. UpJ
Jriy UDSGnxm__|
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19.4 205
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I Ocl Btvxk (Pli
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Apr. SepL Brown CJotmJ.
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14
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I Aog CardoEnaMBM
I May CaLwririxtUpl
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, 4.4 8.9 J*a Aug Elea Rentals 25p
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34 43 7.0 Jaa Aug EnwarSem. lDp.
34 82 4.9 Feb. Aag Ewvtaralrtlft-
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LORRY
LOADER
___ ffiORGECOHaMAOflNSinJD
600 23-25 SUNBEAM ROAD, LONDON
FINANCIAL TIMES
Monday August 9 1982
Scorn at ‘upturn’ joined by alarm
INDUSTRY IN the West Mid-
lands, where jobs this year have
disappeared at the rate of
11,000 a month, leads the cam-
paign for government action to
prevent more cuts in the manu-
facturing base.
Mir Cliff Waliiker, chairman
of West Midlands region of the
Confederation of British Indus-
try, said last right: "Jobs are
going on a scale and at a pace
that makes public employment-
creation schemes and any
successes achieved by small
companies almost irrelevant.”
His council was some months
ago the first to pour scorn on
Whitehall and Westminster
talks of a possible upturn in tbe
economy. Midlands indus-
trialists Cor most of the year
have been warning that orders
remain low, cash-flow is deterio-
rating and redundancies will
continue.
Now' there is new concern of
more cuts. Car-industry sales
tills month, with introduction of
the Y registration-mark, -will be
crucial to the pace of activity
in a region where about one in
sue of manufacturing jobs are
directly dependent on the auto-
motive sector.
Automotive Products has just
said 900 jobs must be axed and
7,500 workers put on shart-time
because of continuing weak
demand. Talbot is shedding 450
jobs to end short-time working.
There is concern BL's efforts
to cut costs could force corn-
pan ents-orders overseas.
Any redundancies would
follow a dramatic contraction
of activities by the main
assemblers in the region, BL,
Talbot and Massey-Ferguson.
West Midlands
Arthur Smith sets the
scene in the first of
a series on the
crumbling industrial
heartland
20 *
15?.-
10 %-
Unemployed
Unemployment
WEST MIDLARO
5*-
1965 '70
iaMKW ggg Scntem C mmilll lon
mie adviser, said yesterday.
“The region went into a nose-
dive in 1980 and there are no
signs of it coming out. The
only figures we can project are
of an upward climb in unem-
The region's ■ basic
Government
hardliners
defend
economic
ployment The regions basic a/ttt
industries have been chopped w Y
away and as yet there are no
industries to take their By Margaret Yan Hattem
Most dependent component-
suppliers concentrated here
have cut workforces by at least
20 per cent.
Manpower Services Com-
mission figures show the West
Midlands, traditionally the
industrial heartland, has
suffered disproportionately from
recession. Afore than one in five
manufacturing jobs was swept
away in the past six years.
Industrial employment slumped
from 1.02m in 1975 to 786.000
only by last year.
It Is the pace of the decline
over the past two years, how-
ever. that has spread alarm.
Unemployment has climbed to
16.2 per cent, well above the
national average and com-
parable with traditionally
depressed regions.
A series of company closures,
rationalisation and redundancy
programmes, involving names
such as GKN, Lucas. AE, Rubery
Owen. Wedgwood and Royal
Doulton. lost 130,000 jobs is tbe
12 months to June 1981. Another
39.000 jobs went in the follow-
ing six months. Cuts were con-
tinuing at the rate of about
11.000 a month this year.
The shake-out has spread well
beyond tbe vehicle, engineer-
ing and metal-bashing indus-
tries. Workers in the ceramics
industry dropped from 504100 to
31.000. Even service-sector
employment, which bad shown
steady growth, dipped after
1980.
West Midlands County Coun-
cil, which set up an enterprise
board to bait decline, forecasts
that if trends continue the
present post-war record 17 per
cent unemployment will climb
beyond 20 per cent within two
years*
Mr Terry Pitt senior econo-
new
place."
Air Wallikpr. for the CBI, said
the low level of pay settle-
ments underlined there was no
sign of recovery in the region.
Many deals in the region were
being struck at about tbe 2} to
3 per cent level. Many em-
ployees had foregone increases.
Union membership dropped
sharply- Transport and General
Workers' Union membership in
the region has fallen by 105,000
to 282.000.
Finances as well as the
merits of a dispute are becom-
ing important in determining
whether official backing is
given.
The growth of unemployment
and the series of reverses
delivered to the shop-steward
movement, particularly at BL.
undermined the strength of
unions in the West Midlands,
once noted for their militancy.
• The decline in the civil
engineering industry is acce-
lerating, particularly in the
Midlands and North West with
all except smaller companies
showing a drop in orders com-
pared with three months ago.
according to a report published
yesterday by the Federation of
Civil Engineering Contractors.
It says larger companies have
been affected particularly since
its April survey.
U.S. bank
regulators
rescue
Abilene
By David LasceUes in New York
U.S. BANK regulators have had
to rescue another troubled
energy-lending bank in the
southern states.
The Federal Deposit Insur-
ance Corporation announced at
the end of last week it had
arranged for the Abilene
National Bank in Texas to be
token over by the Mercantile
Texas Corporation, one of the
state's largest banks.
The rescue comes only a
month after the collapse of Penn
Square Bank in Oklahoma,
which caused huge losses. The
Abilene banks is about the same
size, but its problems are ex-
pected to be less damaging.
Abilene, unlike Penn Square,
did not sell huge amounts of
loans to other banks. Its
rescue means it will setay in
business and uninsured deposits
will be secure.
The bank had assets of about
3500m (£292m) and was a large
lender to local energy com-
panies. Hie quality of its loan
portfolio deteriorated with the
decline in oil prices.
Its problems increased when
Penn Square collapsed, and
highlighted the strains that
energy-lending banks were
suffering. Abilene had a serious
run on deposits which it was
unable to staunch even though
it took out newspaper adver-
tisements to reassure depositors
that all was well. The Office of
the Comptroller of the Cur-
rency, which examines U.S.
banks, also took the unusual
step of announcing publidy that
it believed the bank to be
sound.
The deterioration continued,
however, forcing regulators to
arrange tbe rescue.
The FDIC will deposit 550m
with Abilene at below-market
rates for five years to facilitate
the merger with Mercantile
Texas.
UK assesses new oil platform
BY RAY DAFTER. ENERGY EDITOR
NORTH SEA oil companies are
evaluating a British-designed
oil production platform which
could provide an answer to
the development of small,
marginally-ecoDomic fields.
Mr Alex Copson, the plat-
form’s designer, claimed at the
week-end that an integrated
production, storage and trans-
portation system could be built
for 9450m (£260m), about half
tbe cost of a conventional fixed
steel platform.
Among the companies look-
ing. at tbe concept Is Phillips
Petroleum, which is seeking
cost-effective ways to exploit its
complex of Thelma, Tiffany and
Toni fields in block 16/17. about
140 miles north-east of Peter-
head. Scotland.
Britoil, the state exploration
and production corporation,
which is about to develop the
Clyde Field at a cost of almost
£lbn, is also to study the
system, it is .understood.
In the next few weeks a new
company, Interig, is to be estab-
lished to design, build, sell and
lease the floating platform.
About £5 m is being raised
from the City and interna-
tional engineering companies,
although the majority interest
in Interig will be held by the
present backers of the project
including oil producer Mr Algy
Cluff. Mr Copson, and entre-
preneur Mr Richard King.
Mr Copson— a director of'
Otaff Copson Designs, the com-
pany involved in the initial
development — said that untike
other esmi-submersible floating
production systems his plat-
form could continue operations
in the worst weather and
roughest seas. It could also re-
inject natural gas into oil fields
and operate in water depths of
more than 2.000 feet.
Mr Copson, a former deep-sea
diver, said the idea came to
him while working in the North
Sea. Operations on the semi-
submersible drilling rig had
been suspended because of bad
weather.
“I thought there must be a
better way. What was needed
was a transition from the oil
industry’s version of a bi-plane
to something like a jump jet."
Originally Mr Copson, 31,
tried to obtain financial backing
from the City. “I encountered
lack of interest, lethargy— you
name it," he said. Mr Cluff came
to his rescue. So far about
£250,000 has been spent on
designs and tank testing models.
Mr Copson is proposing a
novel way of repaying Mr Cluff
— if the concept ever becomes
a commercial reality. He wants
to make sure that the Cluff Oil
company is provided with an
equity state in any future field
development incorporating the
production design. This, he says,
will be a condition of the plat-
form sale or leasing arrange-
ment.
No such restrictions are
planned for North Sea fields
developed under existing
licences, however. Neither will
he be seeking special con-
cessions from any overseas
customers.
Steel pact
been informed officially by the
U.S. Administration that the
agreement had been rejected by
the U.S. steel industry.
In a statement issued through
the EEC office in Washington,
Viscount Davignon appeared to
be trying to give the Reagan
Administration more time to
try to persuade the U.S.
industry to accept a deal which
would limit European exports
of 11 steel products to 5.754
per cent of the U.S. market.
In return the deal calls on
the U.S. industry to drop legal
action against EEC producers
on grounds of unfair trading
practices. U.S. Steel made it
dear, however, that ft was not'
prepared to do so on those
terms.
The Brussels Commission is
Continued from Page 1
thought to have made urgent
representations Over the week-
end to the U.S. Commerce
Department to establish whether
Washington views U.S. Steel’s
attitude to the pact as marking
the end of the steel peace bid.
Brussels is now waiting to
bear whether the Reagan
Administration will use maxi-
mum political pressure to make
the American steel industry
accept the deal.
The problem wHa be further
complicated today by the U.S.
Commerce Department's
scheduled findings on an array
of anti-dumping cases that have
been brought against EEC steel
producers by t&eir U.S. com-
petitors as a complement to the
anti-subsidies suits that
triggered Brass els' attempts to
strike a “global" EEC-UJS.
steel trade deal.
If , as is likely, the depart-
ment finds that European
exports have been subsidised —
and if a separate ruling in
September finds that the U.S.
industry has suffered material
injury, as a result— 'heavy duties
would officially be levied on
European steel shipments to
tbe U.S.
At the end of last week’s
negotiations, the EEC delega-
tion was assured by Mr Malcolm
Baldrige, the US. Commerce
Secretary, that the Administra-
tion would exert maximum
political pressure on tbe U.S.
industry to go along with the
deal.
THE RIFT ■ between the
Government and industry on
what they consider is the true
state of tbe economy is putting
the Prime Minister's closest
supporters in Lbe Cabinet
increasingly oo the defensive.
Economic hardliners in the
Cabinet rallied at tbe weekend
to support the Chancelior Sir
Geoffrey Howe in his determina-
tion not to introduce a mini-
budget This comes amid signs
that the Confederation of
British Industry is likely to
follow up its gloomy economic
report, published last week,
with concerted pressure for
refiationary measures in the
autumn.
However, even tbe staunchest
supporters of the Chancellor’s
economic strategy appear to be
taking care to tone down thdir
predictions and to avoid'striking
a note of false optimism.
Mr Norman Tebbit, the Em-
ployment Secretary, criticised
the “ doom-mongers ” who saw
little hope of a decline in un-
employment. Tbe pessimists
had been wrong about the
Government’s ability to reduce
i nfla tion and would be just as
wrong about unemployment, he
said at the week-end.
He avoided carefully any pre-
dictions about when unemploy-
ment would start to fall.
“New technology and work-
ing practices mean that many
old jobs are disappearing, but
new ones will take their place.”
he said. “ This has always hap-
pened in the past and will be
just as true in the future."
He gave no indication - of
when or where he expected this
to happen, turning instead to
attack " shortsighted militant
union leaders ” who were ■* per-
fectly haony <to pursue their
own selfish political ambitions
by trading on the unemployed.”
Mr Tebbit’s attack on trade
unionists comes as The Govern-
ment braces itself for a new
round in the pay dispute in the
health services. Much hangs
on Whether the Royal College
of Nursing, due to vote on
August 26, accepts what the
Government insists is its final
off'ir.
The nurses’ refusal of an
earlier offer appears to have
taken -the Government by sur-
prise and the possibility of n
second refusal, which could
bring chans -to the health ser-
vices, mieht also strain existing
tensions «n the Cabinet.
Both tbe Prime Minister and
Sir Geoffrey Howe are deter-
mined that the special cabinet
session on September 9 to dis-
cuss govemmen tspending should
not turn into a "wet" versus
" dry " clash over tbe need for
a mini-budget to boost the
economy.
Mr John Biffen, leader of the
Commons, and Mr Leon Brittan,
Chief Secretary to the Treasury,
both made speeches at the
weekend intended evidently to
pre-empt Cabinet re-runs of
earlier battles.
THE LEX COLUMN
The reshaping
Turner &
Continued from Page 1
Pertlni
of Confindustria, the private
employers’ association, warned
yesterday that the political crisis
would only add to the dangers
of a slump in outpu tand a fur-
ther rise in unemployment when
actlvtiy resumed in September.
The crisis had cut short the
Government's programme to
res tractive Italy’s public
finances, be said.
Hopes of measures to revive
industry bad vanished. But it
was essential the politicians
tackled the country’s under-
lying economic problems at
once, he added.
In tbe meantime calculations
are already under way for a
possibel election date. Tbe dates
most widely canvassed are the
last Sunday in October, and
either of the first two in
November.
■' The Socialists appear to be
taking the line that only agree-
ment between the parties on
measures to restore authority to
governments. In particular by
abolishing secret parliamentary
votes of the type which proved
fatal last week to Sig Spadolinj.
win make them relent from
forcing a dissolution.
t
Airlines move on ‘bucket shops’
BY MICHAEL DONNE, AEROSPACE CORRESPONDENT
GOVERNMENT aviation autho-
rities throughout tbe world are
to be urged to impose sanctions
on airlines involved in what the
International Air Transport
Association calls “illegal bucket
shop” ticket deals, in which
tickets are sold at prices sub-
stantially below official ones.
Recognising that millions of
travellers benefit from bucket
shops, however, the association,
through its Fare Deal Monitor-
ing Group, recommends that a
range of bona fide discount
fares could be introduced by
the airlines, with full govern-
ment approvals.
These moves, announced over
the week-end, follow the recent
meeting of IATA airlines in
Geneva, at which it was agreed
to take strong measures to try
to reduce, if not eliminate,
ticket discounting, which the
airlines estimate is costing
them $lbn a year in lost
revenues.
The Fare Deal Monitoring
Group wiH work in conjunction
with IATA’s regional fares
co-ordinating conferences to
help eliminate bucket shops, by
proposing to introduce discount
fares where market conditions
require them. '
IATA has 117 members
throughout the world, but there
are many airlines that are not
members and who cannot be
found by fare-fixing rules. Non-
member airlines often sell
tickets at cut rates (with the
tacit approval of their govern-
ments! in competition with
LATA airlines, forcing the latter
to follow suit.
Mr lan Ritchie, chairman of
the Fare Deal Monitoring
Group, and external affairs
director of British Caledonian
Airways, said at the weekend
that illegal ticket sales through
unlicensed bucketsbops was “ a
blight on the industry.
“Against the background of
an overall loss of 51,6ba on
international scheduled ser-
vices in 1982, the persistence of
many airlines in selling cut-
price tickets illegally reflects
the logic of tbe lunatic asylum,"
he said.
Mr Ritchie said that airlines
throughout the world bad
already introduced a wide
range of discount fares and
improved their services in
recent years, “ all above board
and available through safe,
licensed travel agents.”
He said that one of the Fare
Deal Monitoring Groups imme-
diate • tasks was to provide
guidance on the development of
the proposed new discount
fares through IATA's own
fares-fixing conferences.
Members of >the group would
work with those conferences in
reviewing world airline market
conditions on a route-by-route
basis and, where necessary,
propose new discount rates for
approval by the respective
governments.
“As an airline group, we
shall now be meeting with
government bodies to achieve
agreement on moves to end mar-
ket malpractices, in the best,
long-term interests of the air
travel consumer, the bona fide
licensed travel agent and the
airline industry," Mr Ritchie
said.
The main “ malpractices ”
which the group intends to fight
include illegal fare cutting
(offering tickets below officially
approved rates), paying exces-
sive commissions to licensed
travel agents, and paying com-
missions to non-licensed agents.
The member-airlines of the
Fare Deal Monitoring Grouo
are British Airways, British
Caledonian. Aeroliness Argen-
tinas. Air Afrique, Air Canada,
Aar France. Japan Airlines.
KLM. Middle East Airlines. Ran
American and Qantas.
Weather
UK TODAY
CLOUDY, becoming bright.
Midlands, E. and Gent N. Eng-
land, S. Wales
Sunny, cloud later. Max. 22C
(72F).
Rest of England, N. Wales, N.
Ireland
Dull, .becoming sunny, with
showers. Max. 22C (72F).
Scotland ■
Dry and sunny, rain jn places.
Max. 19C (66F).
Outlook: Sunny with showers.
WORLDWIDE
Y'day
Y'day
mlddei
midday
•c
*F
•c
•F
Ayaccio T
25
71
London
S
23
73
Algiers S
28
82
L Ang.t C
19
SB
Amsdm. C
X
8
JLuxmbg. -C
20
68
Athena F
29
»
Luxor
s
40 104
Bahrein
—
—
Madrid
s
26
79
Bsrclna. F
to
7J
Majorca
c
28
82
Beirut
—
—
Malaga
s
26
79
Belfast C
18
64
Malta
Belgrd. T
TO
«
M’chstr
c
20
68
Berlin S
23
84
MeJbne.
s
19
68
Brarritt F
22
72
Mx. C.t
Braghm. C
21
7C
Mfemlf
F
28
8?
Blackol. C
17
fa
Milan
s
23
73
Sordx. F
73.
72
Montrf.
F
20
68
Boulgn. C
18
64
Moscow
S
19
66
Bristol C
19
66
Munich
F
20
68
Brussels C
22
72
Nairobi
F
19
66
Budpst. F
27
SI
Naples
F
28
82
Cairo
—
.
Nwcstl.
C
21
70
Cardiff C
19
66
N York
c
22
72
Cas'b'ca S
25
77
Nice
F
24
75
C apoT. B
13
55
Nicosia
S
29
84
Chicg.t C
22
72
Oporto
s
28
82
Cologne C
21
70
Oslo
s
77
81
Cpnhgn. S
28
82
Paris
c
21
70
Corfu S
30
86
Perth
c
13
55
Denve rt R
15
59
Prague
c
24
75
Dublin C
22
72
Ryfcjvfc.
R
10
50
Dbnmk. F
28
82
Rhodes
s
30
86
Ednbgh. Ft
19
96
Rio J'of
Faro S
27
SI
Roms
F
27
81
Florence C
22
7?
Salzbrg.
C
IS
66
FrankfL C
21
70
S’ciscot
Funchal S
24
75
Slngspr.
F
31
88
Geneva C
19
66
S'tiaqo
_
—
Gibrltr. S
22
72
Stckhm.
S
29
84
GCeq'w . R
18
84
Strasbg.
c
23
73
G'msey C
18
64
Sydney
s
16
61
HehtinW S
73
73
Tanofer
F
X
«
H. Kong F
29
84
Tel Aviv
s
to
B2
Innsbrfc, C
IB
OT
Tenerire
s
29
M
Invmss. C
?1
70
Tokyo
c
28
82
l.o.Man C
Ifi
fil
IVntot
F
18
R4
Istanbul S
2fi
79
Tunis
T
to
79
Jersey F
2rt
68
/alencis
S
28
82
Jotiurtj S
17
m
Venice
F
27
81
L. Pirns. S
74
75
Vienna
F
23
73
31
m
Varsaw
F
29
B4
Locarno . F
2*
75
Zurich
F
20
68
R— Rain. — Sunny- SI — Sleet.
T— ' Di under. -
t Noon GMT temperatures.
Turner & NewaH has been
the most spectacular casualty of
the equity market’s latest bout
of jitters about heavy manufac-
turing shares. On one day last
week when (he market as a
whole was rising the £1 nominal
shares dropped from 43p to 32p
— a fali which looked tike the
anticipation of terminal suspen-
sion. A statement from the
company designed to inject a
sense of readity. if not reassur-
ance, provoked a rally, but by
Friday everting tbe price was
back down to 34p. and the
market capitalisation to £36.9m.
After a long period trading
near to par, the shares began
to slide after the preliminary,
statement in March — a bitter
disappointment to a market
whiah was beginning to view
T & N as a recovery stock. The
last quarter of 1981 -had proved
catastrophic, the . four-point
increase in UK base rates leav-
ing tbe company's volume
projections, not for The first
time, hopelessly over-optimistic.
On top of this, there were
severe working capital problems
in Zimbabwe, where the mines
were unable to cut manning
levels and output in line with
the decline in world demand for
asbestos fibre. Hunt Chemicals,
the showpiece of the group's
unhappy acquisition programme,
brought out some lousy last
quarter figures.
The directors talked about a
bottoming out of demand, but
the passing of tbe final dividend
suggested less- than whole-
hearted confidence in this
judgment and considerable
worries about cash. Partly as
result of Zimbabwe, net debt
had risen by 48 per cent and
the group debt:, equity ratio
was up 15 points to 51 per cent
On the day of the figures the
shares closed at 77p: what has
happened since to justify a fur-
ther 55 per cent fall in the
price? Part of the trouble
stems from the renewed con-
cern about future claims
against asbestos-related disease
in the light of a sensational
television programme. The pro-
visions for known cases are ris-
ing, and it seems reasonable to
expect charges of up to one per
cent of sales over the next dec-
ade. In addition, there is an
utterly unknown contingent
liability.
But asbestos disease is not
new story. It has also seemed
likely — and the company con-
firmed this in last week’s state-
ment — that asbestos demand
has- once again been disappoint-
ing. Overall sales volume in
the UK is up by a mere one
per cent on the first half of
1981, and prices of some pro-
ducts — brake linings, for ex-
ample — are below the levels of
last summer, as cost reductions
are being forcibly shared with
the customer. - Selow-budget
volume means below-budget
cash, whHe the Zimbabwe mines
are continuing to build stocks.
Last year’s extraordinary debits
have been spent as -cash in the
first half of 1982.
So the half-year balance
sheet is not going to be a
pretty sight, particularly since
lower profits from Zimbabwe
and a hag her interest charge
will have dragged tbe group
into a small loss at the pre-
tax level — although trading
profits In the UK and U.S. may
have been marginally ahead.
Even with somewhat lower
levels of interest rates (T «fc N
has £70m of floating rate sterl-
ing debt), the group wild do
well to be much in profit pre-
tax for the year as a whole.
A worthwhile recovery, of
course, could change all that
The .group has now pushed its
overheads— including labour —
to a level at which it is already
beginning to get a reduction in
unit costs. That has meant
shuffling the UK labour force by
35 per cent And the prelim-
inary attack on the high level
of gearing— through asset dis-
posals— will bear fnrit in the
autumn when T & N receives
part-payment for its £25ra sale
of the brand new Newton
Ayctiffe PVC resin plant to
Norsk Hydro.
r
The disposal programme does
not stop there; a couple: mere
sales, at least one of them
substantial, may now be in ..
pipeline — but • not . . Hum
Chemical, which T & N is deter- •-
mined to hold on to. ’' On a ~
pro-forma " basis (not all the
sales may take place this year) v
end-1982 gearing could be
some thin g .under 70 per cart,
a ratio which includes , jn j
shareholders’ funds £100ra of '
Zim babwean net assets. ■ Strip--'
ping Zimbabwe out again, tbe ,
figure might be nearer 90 per
cent 1
That leaves T & N in a tight ~
corner, but it is not an impes- .
sible position, provided that
the relentless cash drain stops
there (quite apart from any
need to finance an upturn). In
the three-year period 1979-81.
£70m of asset disposals could
not stop T & N’s net borrow- (
ings from rising £82m.
The pressure on the balance
sheet should now be starting
to ease, and the breakeven point
of the UK businesses has been .
drastically lowered. -It .is not-'
quite clear how much more
management action can achieve r
if the upturn keeps on failing I
to come, and the group is cer- r
talnly in no position to wilh- J
stand a calamity. But with a .
modicum of good luck— not Its t
strongest suit in the last few ,
years— T & N should begin to :
trade out of the trough next
year. t
It will be extremely lean, but
not noticeably fit — highly-
geared and over-dependent on
sluggish and often - cash-
absorbing businesses. To return
to a proper state of corporate ; . .
health could take years— some- ,
thing which is implicitly recog- , -
nised by the absence of any ,
take-over approach. • however
tentative, for a company now .
standing in the stock market J
at roughly 15 per cent of book ,
net worth.
To suggest that T & N shares ;
should simply be bought fuf...-
recovery would be to repeat the ; .
mistake of naive optimism that t •'
the company’s management has .
made so many times in the past
few years. But there is no •-
doubt that the market is cur-
rently co nee n Ira t ting on the •
risks to the exclusion of the .
possible rewards. A larger and
flabbier business, also called .
Turner & NewaU. earned 31p
a share in 1977.
ICGas
Imperial Continental Gas Association
(A holding company in the fuel and power industries)
Salient points from the speech of Mr F. E. Zollinger, Chairman, at the Annual
General Meeting on 6th August 1982.
Profit and Dividend
The profit attributable to 1C Gas for tbe year ended
31st March 1982 was £28,631,000 (1981
£24,264,000). The proposed rate of dividend for the
year is 9J2p per £1 stock unit (1981 8p per £1 stock
unit). The final dividend of 6.2p per stock unit is
payable on 20th August 1982.
The profit figure is the highest ever atta'oied by IC
Gas even though we had to contend with the neg-
ative impact of the decline of the Belgian franc. This
year's ConsoBdsted Balance Sheet shows a further
net increase in borrowings of only £7 mfflian in Spits
of £19.5 mfllian expenditure on the Maureen o3 field.
Although we foresee a small further increase in our
external debt next year, once the Maureen field is on
stream, we should see our Cash Row turning
positive.
Belgian Gas and Electricity
Belgium's economy remains overshadowed by
serious unemployment, by an ailing sted industry and
by uncompetitive production costs in various other
sectors. To restore the country to economic and
financial health w31 require prolonged sacrifices and
exceptional political determination. The devaluation
of the Belgian franc within the EMS accompanied by
far reaching soda) and economic reforms iBustrete
the Government’s resolve.
In this sombre context, the perf o r ma nce of the
Anwerpse Gasmeatscftappij (AGM) stands out
impressively, its profits advanced in spite of
somewhat more -dement weather conditions.
Operational efficiency and the long term investment
poScy pursued by its associate K3AO have both*
played a rote in this.
The results obtained by UNERG in 1981 are
commendable, in the course of the nexrtwo years,
four new nuefear electricity generating plants w#
come on stream and average electricity generating
costs wB deefine. Consequently, the sector's medium
term prospects can be regarded as reasonably
satisfactory.
Petrofina
The acquisition of new North American assets »
receiving constant attention. In this context,
PBtrofha has recently joined a consortium artendirqj
to embark on exploration in Alaska, financially, the
company is h a strong position. During 1981, a cash
flow was generated whkhexceededcapHriexpenfr
tore by BJrs. 15 baton.
CentLBv Power and Light
The construction of the production platform and
loading column for the Maureen field ie pro gre ssing
wel while one water injection and ten production
wels have been drilled. VUe consider it reasonable to
expect that the completed structure wH be towed
out and totalled during the summer of 1983, with o3
canting on stream towards the end of that yeae
North Sea oH is today a major component of The
British economy, and an rncBspensabte source of
revenue to the Exchequer If, because of excessiva
taxation, marginal fields should not be developed,
Britain's self-sufficiency in oB will cease sooner rather
then later. It seems self-evident that no Government
wffl be so short-sighted as to allow this to happen.
Accordingly, we envisage that other structures wifi
be developed after Maureen.
Calor Group
Despite the unfavourable industrial cGmate, the Calor
Group enjoyed a satisfactory year: Two mam factors
.account for the advance in pre-tax profit: the
rationalisation measures taken in the previous year
coupled with higher productivity and the cold speto
which marked the past winter!
The LPG storage faeffity to be constructed at South
KHRnghofrne is part of Color's plan to strengthen its
capacity to meet demand during peak periods. Calor
is equally intent on opening further outlets and has
newstarted to market 'Calor Gas HomeUeaf which
provides central heating, hot water and cooking
fatifitto tram a bulk tank or several cyfinders.
CompAir Group
"Hie British economy remains in acuta recession. In
the circumstances, CompAir has achieved results
wWch amply reward our confidence. The
improvement in profit stems from measures to
rationalise CompAir*s operations- and thereby
enhance its competitive position.
hcontinues to be our intention to give QxnpAirfw
resources needed to enable it to play a more
wgnificanr role in the compressed air equipment
industry, both on the domestic and- international
markets. Because CompAir's products enjoy high
technical repute, they have a world-wide potential-
Already last year 74% of CompAir's sates were
abroad.
The Future
Our operations are increasingly affected by the
ewwrtion of the world economy, which in turn is
»®santiaBy conditioned by the monetary poficyof
JeUrtted States. The negative impact of high
nterest rates in that country has given rise to
widespread anxiety but ft would not be prudent to
aspect the American authorities to ch a ng e their
stance at an early date. The coroSwy is that no
meaninglid industrial recovery in Britan is ftsfyto'
materialise in the near future.
The relatively steady, trend of oH prices Is aU the
more significant for us because we expect the
Metroen field to produce its first o3 by the aid of
1983. If this event were to coktdde with a modest
revival of 'world economic activity toting to
enhanced demand for ail and thus to firmer erode
prices, the consequences would dearly be PctoficiaL
HJSSamucf Registrars Limitsd, SGreencoatPtaca, London SWlp 1PL.
\
Reproduction of the content* of thi* iy
Registered et the Past Office. Printed
Bracken House. Cannon Street. London El
ep ?.r *n eny mennerie not permitted without poor consent of the ouWie% '
Clements Praee for end published by the Financial Time*
4BY - G C Tbe Financier Times Ltd • 13SZ
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